Kendrapada: Coal India Limited (CIL) has planned to establish two additional non-coking coal washeries with a total capacity of 27 MTPA in Mahanadi Coalfields Limited (MCL) in Odisha, as stated by Minister of State for Coal and Mines, Satish Chandra Dubey, in the Rajya Sabha on Monday. The proposed capacity for these washeries will be 15 million tonnes (MT) annually at Balaram-Hingula mines and 12 MT annually at Kulda-Garjanbahal.
Additionally, a coal gasification-based ammonium nitrate plant is expected to be commissioned in FY 29-30 in Lakhanpur by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between CIL and Bharat Heavy Electricals Limited (BHEL), Dubey noted while responding to MP Manas Ranjan Mangaraj’s inquiry.
The minister further explained that the transportation of raw coal to other states for washing or end-use is determined by logistical efficiency and proximity to consumption centers. Although this may result in some value addition activities moving outside Odisha, the state continues to benefit from revenue through royalties, District Mineral Foundation (DMF) contributions, and other statutory levies on coal production.
The government has implemented various measures to ensure that coal-bearing districts in Odisha gain economic and employment benefits, including direct employment opportunities provided by MCL to eligible members of displaced or affected families in line with the Odisha R&R Policy, 2006, as well as preferential allotment of certain contracts (such as coal transportation) to them and skill development initiatives.
The minister reported that employment benefits have been extended to 300 project-affected families in 2023-24, 315 in 2024-25, and 447 in 2025-26 (to date). Furthermore, 3,688 youth have received training, with approximately 2,900 placements achieved through MCL’s CSR initiatives. Significant investments have been made by MCL in infrastructure, healthcare, education, women’s empowerment, and livelihood projects, with over Rs 1,000 crore spent in the last five years under CSR initiatives, primarily in Angul, Jharsuguda, Sambalpur, and Sundargarh districts.
