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BCCL's Dugda coal washery set for monetization; govt eyes self-reliance in steel sector

This initiative is part of a broader strategy to enhance the efficiency and output of India's coal sector, specifically targeting the augmentation of domestic steel manufacturing capabilities.

New Delhi: The ministry of coal has set in motion the monetization of the Dugda Coal Washery, with a capacity of 2 million tonnes per annum (MTPA), under Bharat Coking Coal Limited (BCCL), officials said.

This initiative is part of a broader strategy to enhance the efficiency and output of India's coal sector, specifically targeting the augmentation of domestic steel manufacturing capabilities.

Officials detailed that the monetization will occur through a transparent auction process, with the facility being awarded to a steel manufacturer that offers the highest premium for the coal quantity. The winning bidder will be tasked with the design, renovation, operation, maintenance, and eventual transfer of the washery, employing the Build/Renovation, Operation, Maintenance, and Transfer (BROMT) model.

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The ministry's statement highlighted, "Monetization of 2 MTPA Dugda Coal Washery of BCCL will be held through a transparent competitive auction process and will be awarded to potential steel manufacturer." This move aims to rejuvenate an old and non-operational facility, simultaneously addressing the rising demand for high-quality coking coal essential for steel production.

Coking coal, a vital component in steel production, plays a pivotal role in the industrial landscape, especially in a rapidly developing economy like India.

With India's steel industry on an upward trajectory, the government's efforts to optimize coal resources by monetizing the Dugda Washery align with the national agenda of Aatmanirbhar Bharat, promoting self-sufficiency in critical sectors. The initiative is expected to attract significant investor interest, thereby stimulating economic growth and creating employment opportunities in the region.

The ministry's decision underscores the government's commitment to leveraging national resources to enhance industrial growth, reduce import dependency, and advance towards a more self-reliant economy.