India: CCL floats fresh tenders to expedite coal washery development

Coal India subsidiary Central Coalfields Ltd (CCL) has invited bids to set up two coking coal washeries – New Sawang and Dhori – to increase washed coal supply.

The beneficiation process through washeries involves reduction of ash content and associate impurities so as to improve the quality of domestic coking coal that has high ash content.

Earlier the company had also floated a tender to develop New Rajrappa washery this fiscal.

At present, CCL operates four coking coal washeries with combined annual capacity of 9.35 million tonnes (mnt) namely – Kathara (3 mnt), Rajrappa (3 mnt), Kedla (2.6 mnt) and Sawang (0.75 mnt). However, the effective operating capacity of Rajrappa and Sawang washeries has reduced due to ageing.

The company has planned to commission New Rajrappa and New Sawang washeries adjacent to the existing ones while Dhori is altogether a new addition to the washery set-up.

These apart, the company has also received environmental clearances for New Kathara (3 mnt) and Basantpur Tapin (4 mnt) coking coal washeries. The latest development comes as a part of CIL’s ambitious project to operationalise 12 new coking coal washeries by FY26.

CCL’s washed coal production was marked 0.401 mnt in FY22, down 8% y-o-y compared to 0.436 mnt in FY21. The company ranks last among the washed coal producers behind Tata Steel, Steel Authority of India (SAIL) and Bharat Coking Coal (BCCL).

Tender specifications

The coal processing capacity of New Sawang and Dhori washery is 1.5 mnt and 3 mnt respectively. However, these are required to operate efficiently with an additional feed in excess of 20% over the throughput capacity.

Both washeries would be developed on build-own-operate concept for a period of 18 years.

The scope of work includes supply of washed coal under two products – washed/clean coal and washed coal (power) – having desired parameters tabulated below.

Bid evaluation would be carried out via reverse auction on the basis of washing charge quoted by the bidder in terms of per tonne of raw coal processed on ‘dry basis’.

The last date of bid submission for New Sawang is 20 October, 2022 and for Dhori is 10 October, 2022.


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