Coal Minister Sriprakash Jaiswal today said Coal India will set up 20 new washeries with a combined capacity of 111 million tonnes to help realise a better price for its produce.
"... Twenty new washeries with an annual capacity of 111 million tonnes per annum are being taken up by Coal India (CIL) during the XI and XII Five-Year Plans," Jaiswal said at a coal gas summit here.
At present, CIL operates 17 coal washeries, out of which 11 are coking coal and the remaining are non-coking coal washeries, with a total capacity of 39.40 million tonnes per annum.
The ministry had earlier estimated that establishment of the new washeries would require an investment of Rs 2,500 crore, with a view to reduce the ash content in coal produced by CIL and improve its calorific value, among other things.
Coal India is also interested in tapping shale gas, a form of natural gas trapped in shale rock formations, to improve its bottomline and allow the government to reduce imports of natural gas in the process.
Caught napping when the government permitted the exploration of coal bed methane gas, CIL does not want to miss a similar opportunity this time around, as the government is very keen to step up exploration for natural gas.
"We want to go ahead in the coal-related value chain and tapping shale gas is one such move," CIL Chairman Partha S Bhattacharjee told PTI.
Asked if the government will allow the CIL to get into the shale gas business, Bhattacharjee said, "We will try to convince the government to allow us to tap the gas as we are the largest coal miner, with the largest coal reserves.
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