Coal India Announces Major Expansion in Odisha with New Washeries and Plant
In a significant development for India's coal sector, Coal India Limited (CIL) has unveiled plans to establish two additional non-coking coal washeries with a combined capacity of 27 million tonnes per annum (MTPA) in Odisha. The announcement was made by Minister of State for Coal and Mines, Satish Chandra Dubey, during a session in the Rajya Sabha on Monday.
Details of the New Washery Projects
The tentative capacities for these new facilities have been specified. One washery will be located at the Balaram-Hingula mines with an annual capacity of 15 million tonnes (MT), while the other will be situated at Kulda-Garjanbahal with a capacity of 12 MT annually. These projects are part of Mahanadi Coalfields Limited (MCL), a subsidiary of CIL operating in Odisha.
Coal Gasification-Based Ammonium Nitrate Plant
In addition to the washeries, Minister Dubey revealed that a coal gasification-based ammonium nitrate plant is being set up in Lakhanpur. This facility is expected to be commissioned in the financial year 2029-30. The plant is being developed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture company formed by CIL and Bharat Heavy Electricals Limited (BHEL).
Economic and Employment Benefits for Odisha
While addressing concerns about raw coal being transported to other states for washing or end-use, Dubey emphasized that such movements are guided by logistical efficiency and proximity to consuming centers. He assured that Odisha continues to receive substantial revenue through royalties, District Mineral Foundation (DMF) contributions, and other statutory levies on coal production.
The government has implemented multiple measures to ensure that coal-bearing districts in Odisha derive economic and employment benefits. These include:
- Direct employment by MCL for eligible members of displaced or affected families under the Odisha R&R Policy, 2006.
- Preferential allotment of contracts, such as coal transportation, to project-affected families.
- Comprehensive skill development programs to enhance local employability.
Employment benefits have been provided to 300 project-affected families in 2023-24, 315 in 2024-25, and 447 in 2025-26 (as of the latest data). Furthermore, MCL's Corporate Social Responsibility (CSR) initiatives have trained 3,688 youth, with approximately 2,900 securing placements.
Substantial CSR Investments in Infrastructure and Community Development
Minister Dubey highlighted that MCL has made significant investments in infrastructure, healthcare, education, women empowerment, and livelihood projects. Over the last five years, more than Rs 1,000 crore has been spent under CSR initiatives, primarily in the districts of Angul, Jharsuguda, Sambalpur, and Sundargarh.
These efforts underscore the government's commitment to balancing industrial growth with regional development, ensuring that local communities benefit from coal mining activities through employment opportunities and improved quality of life.
