The Indian government has made it mandatory for bidders to commit to setting up washeries to be eligible to participate in the auction of six coking coal blocks to be announced within the next one month, a Ministry of Coal official said on Tuesday, June 13.
The ministry said that six coking coal blocks would be put up for auction, as already announced for the captive consumption of the steel sector.
However, the bid document will stipulate that all successful bidders will have to set up coal washery units as no unwashed coal will be permitted to be used by their respective end-use plants, the official added.
It was also pointed out that, on successfully securing coking coal blocks and setting up a linked coal washery, it will also be mandatory for the mine operators to use washery rejects in their own captive power plants and surplus rejects will only be sold exclusively to Coal India Limited.