What is a coal washing project report?
A coal washing project report is a detailed project report (DPR) for a washery that removes stone, shale and ash from raw mine coal to sell a cleaner, higher-value fuel. It covers washability, process, machinery, raw coal supply, approvals, project cost, means of finance, five-year projections, DSCR and break-even.
Promoters use it to size the washery and raise a term loan; banks and steel or sponge iron buyers use it to judge yield, cost and repayment.
Also known as: coal washery project report, coal beneficiation plant project report, coal washing business plan, DPR for coal washing unit.
Coal washing plant cost in India: what the sample shows
Our sample report models a heavy media washery that sells 270 MT of washed coal a day over 300 working days. It starts at 60% of capacity, reaches 80% in Year 5 and sells washed coal at ₹5,600 per MT ex-plant.
| Land and site development | 83.22 |
|---|---|
| Building and civil works | 149.27 |
| Plant and machinery | 305.06 |
| Other fixed assets | 40.05 |
| Contingencies | 22.72 |
| Preliminary and pre-operative | 15.01 |
| Working capital margin | 78.35 |
| Total | 693.68 |
| Promoter's contribution (25%) | 173.42 |
|---|---|
| Term loan from bank (75%) | 520.26 |
| Cash credit limit (separate) | 235.06 |
| Total project cost | 693.68 |
Scaling up: a TERI study published by NITI Aayog puts washery capital cost at ₹18–35 crore per million tonnes a year of capacity. Jig plants sit at the low end and dense media plants at the high end. Treat this as indicative and cost your own plant from quotations.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All sample figures are illustrative.
Coal washing process in a heavy media plant
Washing separates coal from stone by density: clean coal is lighter than shale and ash-rich bands. The sample plant uses a dense media cyclone for the main size range and spirals for fines.
- Receipt and crushing
Raw coal from the mine is weighed, sampled and crushed in a double roll crusher to below 50 mm, so stone and coal break apart.
- Screening and desliming
Wet screens remove slimes below 0.5 mm, which would otherwise contaminate the magnetite medium.
- Dense media separation
Coal in a magnetite suspension is pumped into the cyclone; clean coal leaves with the overflow while shale and stone sink as rejects.
- Media recovery
Drain and rinse screens and magnetic separators recover magnetite for reuse, because magnetite loss is a direct running cost.
- Fine coal cleaning
Spiral separators recover saleable coal from the minus 1 mm stream that the cyclone cannot treat.
- Dewatering and water recycling
Centrifuges dry the clean coal, and a thickener and filter press clarify the slurry so water goes back into the plant.
- Testing and dispatch
Each lot is tested for ash, moisture and calorific value, stacked by grade and loaded on trucks or rakes.
Which coal washing technology should you choose?
The route depends on how much near-density material your coal holds, which a float and sink (washability) test shows. Most Indian washeries combine a coarse circuit with a fines circuit.
| Jig washing (Baum or Batac jig) | Pulsed water stratifies coal by density. Needs no magnetite, so running cost is lower, but separation is less sharp on difficult coal. |
|---|---|
| Heavy media bath or drum | Treats coarse sizes in a magnetite suspension; CSIR-CIMFR's pilot drum washer handles minus 75 plus 6 mm coal. |
| Dense media cyclone | Sharpest separation for medium sizes (about 13 to 0.5 mm). The NITI Aayog study calls it the most favourable process for coal that is hard to wash. |
| Spirals and water-only cyclones | Low-cost gravity cleaning for fines of about 1 to 0.1 mm. |
| Froth flotation | Cleans fines below 0.5 mm by surface chemistry; used mainly where coking coal fines are worth recovering. |
| Dry deshaling | Air-based separators remove stone without water. The NITI Aayog study lists them among newer methods used abroad, not yet common in India. |
Raw coal and other inputs for a washery
Run-of-mine (ROM) coal is almost the whole raw material bill. Indian coal usually carries 35–55% ash, so every tonne of washed coal needs more than a tonne of raw coal, and the yield sets how much more.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Raw ROM coal (including transport) | 95% | 1,495.46 |
| Magnetite powder | 3% | 47.23 |
| Flocculants and process chemicals | 2% | 31.48 |
| Total | 100% | 1,574.17 |
In the sample, raw materials are 49.6% of sales. Your report should price raw coal from your actual linkage or auction source.
Machinery for a coal washing plant
The dense media cyclone circuit is the largest single item in the sample, followed by the thickener and filter press that keep the water circuit closed.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| ROM hopper, feeder and double roll crusher | Receives and sizes raw coal | 36.61 |
| Vibrating and desliming screens | Splits sizes and removes slimes | 36.61 |
| Heavy media cyclone and media recovery circuit | Separates coal from stone; recovers magnetite | 91.52 |
| Spiral separators for fine coal | Cleans the fines stream | 24.40 |
| Thickener and belt filter press | Clarifies water and cakes the slurry | 42.71 |
| Clean coal dewatering centrifuges | Lowers moisture in washed coal | 24.40 |
| Belt conveyors and stacker | Moves and stacks coal by grade | 36.61 |
| Coal testing laboratory | Ash, moisture, calorific value, float and sink | 12.20 |
| Total plant and machinery | 305.06 | |
Costs are the sample report's estimates. Get current quotations sized to your washability results before you finalise.
Water, power and manpower for a coal washery
A wet washery is judged as much on its water and dust controls as on its output. These are the points pollution boards and lenders look at.
| Water | Closed circuit with zero discharge. Odisha's washery guidelines cap use at 1.5 cubic metres per tonne of coal, bar groundwater and encourage mine drainage water. |
|---|---|
| Power and fuel | Pumps, crushers and centrifuges run on grid power; in the sample, power and fuel are 13.9% of sales. |
| Manpower | The sample washery employs 132 people across supervision, plant operators and yard labour. |
| Dust control | Water sprays at transfer points, covered conveyors, crusher enclosures, a paved yard and a green belt. |
| Rejects and middlings | Stored as per the environment plan, not dumped in the open. Odisha requires them to be burnt in FBC or AFBC boilers. |
Licences and approvals for a coal washing plant
| Environmental clearance | Required under the EIA Notification 2006 before construction starts; the appraising authority depends on throughput |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; coal washeries are in the Orange category |
| State washery guidelines | Some states set extra conditions. Odisha's guidelines set a minimum capacity of 1 million tonnes a year and require full use of rejects |
| Raw coal source | Coal India linkage auctions or e-auction; since March 2024 the linkage auction has a sub-sector for steel using coking coal through the washery developer and operator route |
| GST | Coal moved from 5% to 18% GST and the ₹400 per tonne compensation cess was removed (Ministry of Coal, September 2025) |
| Basic registrations | Udyam and GST registration, factory licence, fire safety approval and a power connection for the connected load |
Who buys washed coal in India?
Demand shifted after 21 May 2020, when the environment ministry let power plants use unwashed coal without the earlier ash or distance conditions. Buyers that need steady ash, such as sponge iron and steel plants, now drive most private demand.
Coking coal is the growth area. The Ministry of Coal reported in August 2025 that domestic coking coal output rose from 44.79 MT in FY21 to 66.47 MT in FY25. Eight new coking coal washeries totalling 21.5 MTPA were planned or under construction.
- Sponge iron and DRI plants
- Integrated steel plants buying washed coking coal
- Captive power plants and cement kilns
- Coal traders supplying industrial users
- FBC power plants and brick kilns for middlings and rejects
Where a private washery fits: close to the mine, with a contracted buyer for washed coal and a separate outlet for middlings. Freight on stone you have already removed is money saved for your buyer.
Mistakes that weaken a coal washing project report
- Assuming a yield without a washability test
Yield falls fast as target ash drops: in the NITI Aayog study, from about 75% at 34% ash to about 49% at 25% ash for the same coal.
- Giving rejects no outlet
Rejects are often a third of the feed. Without an FBC buyer or a reject-based power plant, they become a storage cost and a consent problem.
- One price for every grade
Washed coal sells on ash and calorific value. Revenue should follow the grade mix your buyer accepts, not a single headline price.
- Thin working capital
In the sample, trade receivables at 45 days are the largest current asset, so the cash credit limit must cover buyer credit.
- Ignoring state siting rules
Minimum capacity, groundwater bans and zero discharge conditions can stop a small washery at the consent stage.
How NPCS helps you set up a coal washing plant
- Washability and capacityPlan the yield, product grades and plant size around your coal's float and sink results.
- Technology and machineryCompare jig, dense media and dry routes and collect equipment quotations.
- Bank-ready project reportProjections, DSCR, break-even and working capital in the format your lender wants.
- Approvals and water planClearance and consent list for your state, closed water circuit and reject use plan.
NPCS's client list includes 1 coking coal washing project report (2024) among 25 assignments in industrial minerals, for promoters, companies and institutions in India and abroad.
What's inside the coal washing sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS coal washing project reports
These are coal washing project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Coking Coal Washing | Coal Washing (Job Work) - 5,000 MT Per Day, By Product (Waste Coal) - 1,000 MT Per Day | ₹60 crore | 34% | 49% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Coal Washing project report: frequently asked questions
How much does it cost to set up a coal washing plant in India?
Capital cost is often quoted per million tonnes a year of capacity. A TERI study published by NITI Aayog puts it at ₹18–35 crore per million tonnes a year. Jig plants sit at the low end and dense media plants at the high end. Our sample report models a 270 MT per day washery at ₹694 lakh. These figures are indicative; your report costs your own capacity and site.
How much washed coal do you get from one tonne of raw coal?
It depends on the coal and the ash you want. In the NITI Aayog study, coal with 43% ash gave about 75% clean coal at 34% ash, but only about 49% at 25% ash. A washability test on your coal is the only reliable basis for the yield used in a project report.
Which technology is best for a coal washery?
Dense media cyclones give the sharpest separation and suit coal that is hard to wash. Jigs cost less to run because they need no magnetite and suit coarse, easier coal. Most plants add spirals or flotation for fines. The right choice follows from float and sink tests, the target ash and the buyer the washed coal is meant for.
Is a coal washing business profitable?
It can be when the yield, raw coal price and washed coal price line up. In our illustrative sample, the washery earns a 20% return on investment in Year 3, breaks even at 52% of capacity and pays back in about 3.9 years. Real results depend on yield, a buyer for rejects and the gap between raw and washed coal prices.
What licences are needed for a coal washery?
Environmental clearance under the EIA Notification 2006 is needed before construction. Coal washeries are in the Orange category for pollution consent, and states usually require a closed water circuit with zero discharge. You also need a secure raw coal source, GST and Udyam registration, a factory licence and fire safety approval. Some states add their own washery guidelines.
Is the sample report free and can I use it for a loan?
The sample is free to view and download as a PDF. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your coal, capacity, site and lender.
Sources and references
- Economic and Environmental Impact of Coal Washing in India (TERI study)NITI Aayog, checked Oct 2026
- Guidelines for coal washeriesState Pollution Control Board, Odisha, checked Oct 2026
- Categorisation of industries: Orange category (as per CPCB criteria)State Pollution Control Board, Odisha, checked Oct 2026
- GST rationalisation on coal (press release, 22 September 2025)Ministry of Coal, Government of India, checked Oct 2026
- Coking coal production and new washeries (press release, 11 August 2025)Ministry of Coal, Government of India, checked Oct 2026
- Coal preparation and carbonisation divisionCSIR-Central Institute of Mining and Fuel Research, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.