Coal India to complete 3 coal washeries by 2012

New Delhi: Coal India, the country's largest coal producer, is planning to commission three out of the 18 coal washeries, which it will develop with private firms by 2011-12.

CIL will spend about Rs 1,500 crore on the project, which will have a washing capacity of over 100 million tonnes.

The company has already floated two tenders for the project through two of its subsidiaries -- Bharat Coking Coal Ltd and Eastern Coalfields Ltd.

Firms wash coal to reduce its ash content and improve the calorific value. The average ash content in Indian coal is 35-38 per cent. Washing helps reduce it by 7-8 per cent.

To be developed on a built-operate-maintain model, the washeries will be owned by CIL while the private companies will maintain and operate them.

Several private firms including diversified entity Monnet Ispat have evinced interest in the coal washeries.

Initially, Coal India had planned to set up 50 coal washeries in the country by the end of the XIth plan period (2007-12). Later, it came up with a revised figure of 28, which was further reduced to 18.