Coal India awards contracts for 2 washeries

Written By Unknown on Senin, 06 Oktober 2014 | 23.26

The government had earlier said that comprehensive measures for enhancing domestic coal output were being put in place along with stringent mechanism for quality control and environmental protection, which includes supply of crushed coal and setting up of washeries.

State-owned  Coal India has awarded contracts for construction of two washeries as part of efforts to augment its capacity to crush coal and ensure better quality of the dry fuel.

The government had earlier said that comprehensive measures for enhancing domestic coal output were being put in place along with stringent mechanism for quality control and environmental protection, which includes supply of crushed coal and setting up of washeries.

"CIL (Coal India Ltd) has initiated action through global tenders to establish 16 coal washeries with an aggregate capacity of 100.6 Mty... Construction job of three washeries are in progress and the same for two washeries have been awarded," Coal India said in a report.

It added: "Jobs of other washeries are in different stages of evaluation." Of the 16 coal washeries, six are coking coal with a capacity of 18.6 million tonnes per year and 10 non-coking coal washeries with a capacity of 82 million tonnes per year, it said.

At present, CIL operates 17 coal washeries with a total capacity of 39.4 million tonnes per year. Out of these, 13 are coking coal washeries with a total capacity of 24.90 million tonnes, while four are non-coking coal washeries with a total capacity of 14.50 million tonnes, it added.

The Standing Committee on Coal and Steel had earlier pulled up Coal India for delays in setting up of washeries and had desired that the coal PSU prepare an action plan to expedite the work of commissioning of washeries. The committee had also observed that the washeries were not set up despite the Ministry of Environment and Forests restricting the use of coal containing more than 34 percent ash content in power stations located 1,000 km away from pit heads.

Coal India stock price

On October 01, 2014, Coal India closed at Rs 344.05, up Rs 2.70, or 0.79 percent. The 52-week high of the share was Rs 423.50 and the 52-week low was Rs 240.50.


The company's trailing 12-month (TTM) EPS was at Rs 20.04 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 17.17. The latest book value of the company is Rs 26.04 per share. At current value, the price-to-book value of the company is 13.21.


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