Coal India Limited is initiating the establishment of two new non-coking coal washeries in Odisha through its subsidiary, Mahanadi Coalfields Limited (MCL). This initiative aims to improve coal quality by reducing ash content and lowering transportation costs. Currently, CIL operates 13 out of India’s 79 functioning washeries, with a total capacity of 39.35 million tonnes per year. These new projects will significantly increase CIL’s non-coking coal washing capacity, which currently stands at 21 MTPA.
The two washeries will collectively contribute an additional 27 MTPA. One of the washeries, a larger facility, will process 15 MTPA at the Balaram-Hingula mining complex in Angul district, while the other will have a capacity of 12 MTPA at the Kulda-Garjanbahal mines in Jharsuguda. By washing coal close to the mining sites, CIL intends to retain more value within Odisha and mitigate the environmental impact associated with transporting raw coal over long distances.
Additionally, Odisha will see the establishment of a coal gasification-based ammonium nitrate plant in Lakhanpur, Jharsuguda. This facility is a joint venture between CIL and Bharat Heavy Electricals Limited (BHEL), operating under the name Bharat Coal Gasification and Chemicals Limited (BCGCL). The plant is projected to commence operations by FY2029-30, converting coal into synthesis gas for chemical production. This aligns with India’s strategy to reduce dependence on imports for natural gas and fertilizer components.
Satish Chandra Dubey, Union Minister of State for Coal and Mines, stated that logistics typically dictate the movement of raw coal, but these projects will promote local industry and job creation in Odisha. Over the past five years, MCL has invested over ₹1,000 crore in corporate social responsibility initiatives across Angul, Jharsuguda, Sambalpur, and Sundargarh. The state is expected to continue generating substantial revenue from royalties and District Mineral Foundation (DMF) contributions as it advances towards increasing local value creation.
