Parliamentary panel urges Centre to assess washed coal export potential

Committee also recommends a time-bound roadmap to modernise coal washeries and adopt advanced beneficiation technologies to improve coal quality

A Parliamentary Standing Committee has urged the Ministry of Coal to prepare a time-bound strategy for expanding and modernising the country's coal washery infrastructure, while also recommending that the government assess the feasibility of exporting washed coal to neighbouring countries once domestic demand is adequately met.

 

The recommendations are part of the Twenty-seventh Report of the Standing Committee on Coal, Mines and Steel, chaired by Bharatiya Janata Party (BJP) MP Anurag Singh Thakur, which was presented in Parliament on Wednesday. The report examines infrastructure development required to augment washed coal production in India.

 

The committee observed that although India has crossed one billion tonnes of coal production for the second consecutive year and remains the world's second-largest producer and consumer of coal, the quality of domestic coal continues to be constrained by its high ash content. It noted that poor coal quality adversely affects combustion efficiency, equipment performance and environmental outcomes, and recommended that coal beneficiation be accorded high priority through a time-bound expansion and modernisation of washery infrastructure.

   

In one of its observations, the panel said India currently does not export washed coal as domestic demand from the power and steel sectors takes precedence. However, it said that with planned additions to washery capacity and improvements in coal quality, opportunities could emerge to access export markets, particularly in neighbouring Asian countries. It recommended that the ministry expedite an assessment of export potential and formulate a long-term export strategy after meeting domestic requirements.

 

Highlighting the need for technological upgradation, the report said coal-producing countries such as Australia, the United States, China, South Africa, Russia and Poland have adopted advanced coal beneficiation technologies. It recommended that the ministry prepare a technology adoption roadmap for India, including phased deployment of advanced washing systems and next-generation dry beneficiation technologies suited to the country's high-ash coal reserves.

 

The committee further noted that only a limited number of washeries currently achieve the prescribed organic efficiency benchmark of 95 per cent, with several older facilities operating below capacity because of obsolete technology. It called for time-bound assessments, clearly defined performance benchmarks and accountability mechanisms to improve operational efficiency and coal recovery across washeries.

 

To reduce logistics costs and improve operational efficiency, the panel recommended that future washeries be established at or near pitheads wherever feasible. According to the report, transporting high-ash raw coal over long distances before beneficiation places an unnecessary burden on rail and road infrastructure, and future washery development should be aligned with mine expansion plans and first-mile connectivity infrastructure.

 

On environmental management, the report expressed concern that washery rejects are likely to increase as beneficiation capacity expands. It suggested establishing a comprehensive monitoring and reporting framework, supported by periodic audits and digital tracking systems, to monitor the generation, utilisation and disposal of washery rejects in accordance with the Washery Reject Policy, 2021.

 

The committee also recommended strengthening the institutional role of the Coal Controller's Organisation (CCO). It observed that the CCO's current responsibilities are largely confined to facilitating the disposal of washery rejects and verifying their calorific value despite possessing significant sectoral expertise. The panel suggested expanding its mandate in phases to include monitoring of washery performance, coal quality, capacity utilisation, environmental compliance and reject utilisation, enabling it to function as a technical oversight and knowledge support agency for the sector.

 

Further, the committee called for the development of a unified digital monitoring and data-sharing platform integrating operational, environmental and regulatory information across coal washeries. It urged the ministry to prepare a roadmap and timeline for implementing such a real-time digital governance architecture in coordination with all relevant stakeholders.