India’s ministry of coal has approved the monetization of a 2 million mt per year capacity coal washery operated by government-run Coal India Limited (CIL) by handing it over to a steel company, government sources said on Wednesday, March 13.
The sources said that the Dugda coal washery operated by Bharat Coking Coal Limited (BCCL), a wholly-owned operational subsidiary of CIL, will be handed over to a steel producer via the auction route and competitive bidding.
The successful bidder will be required to renovate and redesign the non-operational washery on the basis of the operate, maintenance and transfer model of the ministry of coal.
The successful bidder will be offered coal supply linkages from the operational mines of CIL for operating and producing from the washery, the sources said.
The monetization of BCCL’s Dugda Coal Washery is poised to revolutionize the coking coal sector and serve as a model to monetize idle assets in the coal sector, while at the same time meeting the rising demand for washed coal in steel production, the sources said.