CIL to encourage coal washeries in pvt sector on BOO basis

New Delhi, May 16 (UNI) Government has decided to encourage setting up of coal washeries on a Build-Own-Operate (BOO) basis, the Lok Sabha was informed today.

In a written reply, Minister of Coal Dasari Narayan Rao said the state-run Coal India Ltd (CIL) has been encouraging power sector and other coal consumers and private entreprenuers to set up coal washeries on BOO basis for supply of washed coal to the linked consumers.

CIL has been providing land and other infrastructural facilities on lease/ chargeable basis subject to its availablity.

Two such coal washeries projects are under construction one by Kalinga Washery with a capacity of 11 million tonnes per annum (MTPA) in Orissa on BOO scheme for supply of washed coal to thermal power stations of APGENCO from Mahanadi Coalfields Ltd (MCL).

The second KDH Washery with 3.5 MTPA capacity is comming up in Jharkhand on BOO basis for supply of washed coal to the thermal power stations of PSEB from Central Coalfields Ltd (CCL), the minister added.

Dr Rao said apart from this, CIL has also decided in principle to set up washeries with state-of-the-art technologies on Build and Operate (BO) basis where CIL and its subsidiary companies will provide the capital funding and other infrastructure facilities.

It has also been decided that all new opencast projects of more than 2.50 MT capacity, which are not linked to pit-head power stations should be designed with an integrated washery.

He said the purpose of washing coal is to improve the quality by reducing its ash content, removing extraneous materials and increasing the heat value. By setting up coal washeries, the consumers will be supplied with improved quality of coal with reduced ash content along with increased heat value.

Coal can be washed upto the desired level of ash percentage of the consumer.

However, the yield of washed coal is a reckoning factor of level of washing for such high ash coal.

Dr Rao said of the total production of about 361 MT of coal from CIL in 2006-07, about 8 per cent is coking coal, 20 per cent superior grade non coking coal and about 72 per cent inferior grade non-coking coal having high ash content of about 40 per cent, he added.

UNI