Coal is the key contributor to the Indian energy portfolio. It contributes to nearly half of commercial primary energy demand and one-third of total energy demand of the country. Although, India is one of the leading producers and consumer of coal, Indian coal has high ash content and embedded impurities, which needs washing and blending of coal for improving the quality of Run-of-Mine (ROM) coal. The steel sector needs coking coal with ash content of less than eighteen percent. Washing helps in reducing ash content by seven to eight percent. Quality and environmental concerns are causing a shift towards higher utilization of washed and blended coal.  Presently nearly fifty-two commercialwasheries with installed capacity of about 131 MTPA are operating in the country.

In India, only about twenty percent of the coal produced is washed, as against the global average of over fifty percent. Coking coal preparation has long been in operation in India; however the trend of washing of non coking coal is also being seen. About twenty-three percent of the installed capacity is for coking coal and the rest is for non-coking coal. Further, as per the directives of MoEF, the power stations located at more than 1000 km away from coal mines and those located in sensitive areas are required to use coal containing not morethan thirty-four percent of ash on annual average basis.

Ever increasing demand of coal in sectors such as power & other metal manufacturing industries, urbanization, increasing oil prices, increase in extracting capacity and technological advancements are some of the major drivers for the global coal washery industry. Additional cost associated with coal washery, composition of raw feeds and absence of incentives schemes to the miner are some of the factors restraining growth of this industry. 

Almost half of the worlds energy demand over the past decades was fulfilled by coal. In fact coal has been the world’s fastest energy source driven by Asian demand and regional abundance of fuel. Coal washery is an establishment where coal is alienated from slate and different impurities through various mechanical processes which utilize water and take gain of the difference in the specific gravity and its impurities of coal. The more impurities or waste material is removed from the coal the greater is the market value and lower ash content. Earlier coking coal was only washed as it was used in steel manufacturing with an ash content of 17-18 % but new environment regulations has put restriction on high ashcontent coal in power and other industries which necessitates the priority of washing non coking coal also.

Washing  is  carried  out  to  reduce  the  ash  content,  and  to  lower  the  level  of  sulphur and unwanted minerals present in coal. Washed coal has higher calorific value than unwashed  coal  hence  usage  of  washed  coal  helps  in  improving  efficiency  of  steel, cement and power plants. Out of total of 104 coal-based thermal power plants, only thirty percent of power plants are using washed coal. Development of coal washeriesis not keeping pace with the demand of coal.

In the initial stage crushing is done to reduce the size of extracted coal and making it suitable for washing. Size reduction technique involves various processes such as intact, shearing, compression, splitting and attrition. After crushing screening process is done for the separation of heterogeneous particle. Different types of screens are used such as scalping screen, raw coal sizing screen, pre-wet screen, heavy media recovery screen, desliming screen and dewatering screen. Next process for cleaning of coal is through Jigs.

 

The method is operated on the basis of difference in specific gravity. Jigs offer cost effective technology with clean coal yield of 70-85%. Froth Floatation is the most widely used technique for cleaning coal. It utilizes the difference in the surface characteristics of coal and reuses it to clean ultra fine coal. The mixture of coal and water is conditioned with chemical reagents so that air bubbles will stick on the coal and floats on the top, while the reused particles sink. This cleaning technique is generally expensive and complex and is majorly for metallurgical coal. In launder process raw coal is fed into the high end of a trough with a stream of water. As the mixture of water and coal flows down, particles with the maximum settling speed settle down into the lower strata of the stream. The dirt free coal particles settle into the upper strata before separation.

 

Some of the key players in the coal washery market are Phil Group Coal Washeries, Larsen and Tubro Limited, China Metallurgical Engineering & Project Corporation, CLI Corporation and Adhunik Group among others. The preliminary study on coal washery market in India suggests that investment in coal washeries will increase exponentially in the coming years and host huge opportunities for private players.

 

Table of Contents

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances &Equipments

·         Laboratory Equipments& Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

PROJECT FINANCIALS

·         Project at a Glance

Annexure

·         Assumptions for Profitability workings ….…………………………………………....................... 1

·         Plant Economics…………………………………………………………………………….................... 2

·         Production Schedule……………………………………………………………………….................... 3

·         Land & Building…………………………………………………………………………….................... 4

§  Factory Land & Building

§  Site Development Expenses

·         Plant & Machinery………………………………………………………………………….................... 5

§  Indigenous Machineries

§  Other Machineries (Miscellaneous, Laboratory etc.)

·         Other Fixed Assets………………………………………………………………………….................... 6

§  Furniture & Fixtures

§  Pre-operative and Preliminary Expenses

§  Technical Knowhow

§  Provision of Contingencies

·         Working Capital Requirement Per Month………………………………………………................. 7

§  Raw Material

§  Packing Material

§  Lab & ETP Chemical Cost

§  Consumable Store

·         Overheads Required Per Month and Per Annum ……………………………………................. .8

§  Utilities & Overheads (Power, Water and Fuel Expenses etc.)

§  Royalty and Other Charges

§  Selling and Distribution Expenses

·         Salary and Wages ……………………………………………………………………………................. 9

·         Turnover Per Annum ………………………………………………………………………................ 10

·         Share Capital…………………………………………………………………………………................ 11

§  Equity Capital

§  Preference Share Capital

 

•        Annexure 1            ::        Cost of Project and Means of Finance

•        Annexure 2            ::        Profitability and Net Cash Accruals

§  Revenue/Income/Realisation

§  Expenses/Cost of Products/Services/Items

§  Gross Profit

§  Financial Charges    

§  Total Cost of Sales

§  Net Profit After Taxes

§  Net Cash Accruals

 

•        Annexure 3            ::        Assessment of Working Capital requirements

§  Current Assets

§  Gross Working Capital

§  Current Liabilities

§  Net Working Capital

§  Working Note for Calculation of Work-in-process

 

•        Annexure 4            ::        Sources and Disposition of Funds

•        Annexure 5            ::        Projected Balance Sheets

§  ROI (Average of Fixed Assets)

§  RONW (Average of Share Capital)

§  ROI (Average of Total Assets)

 

•        Annexure 6            ::        Profitability ratios

§  D.S.C.R

§  Earnings Per Share (EPS)

§  Debt Equity Ratio

 

•        Annexure 7            ::        Break-Even Analysis

§  Variable Cost & Expenses

§  Semi-Variable/Semi-Fixed Expenses

§  Profit Volume Ratio (PVR)

§  Fixed Expenses / Cost 

§  B.E.P

 

•        Annexure 8 to 11   ::        Sensitivity Analysis-Price/Volume

§  Resultant N.P.B.T

§  Resultant D.S.C.R

§  Resultant PV Ratio

§  Resultant DER

§  Resultant ROI

§  Resultant BEP

 

•        Annexure 12          ::        Shareholding Pattern and Stake Status

§  Equity Capital

§  Preference Share Capital

 

•        Annexure 13          ::        Quantitative Details-Output/Sales/Stocks

§  Determined Capacity P.A of Products/Services

§  Achievable Efficiency/Yield % of Products/Services/Items 

§  Net Usable Load/Capacity of Products/Services/Items   

§  Expected Sales/ Revenue/ Income of Products/ Services/ Items   

 

•        Annexure 14          ::        Product wise domestic Sales Realisation

•        Annexure 15          ::        Total Raw Material Cost

•        Annexure 16          ::        Raw Material Cost per unit

•        Annexure 17          ::        Total Lab & ETP Chemical Cost

•        Annexure 18          ::        Consumables, Store etc.

•        Annexure 19          ::        Packing Material Cost

•        Annexure 20          ::        Packing Material Cost Per Unit

•        Annexure 21          ::        Employees Expenses

•        Annexure 22          ::        Fuel Expenses

•        Annexure 23          ::        Power/Electricity Expenses

•        Annexure 24          ::        Royalty & Other Charges

•        Annexure 25          ::        Repairs & Maintenance Expenses

•        Annexure 26          ::        Other Manufacturing Expenses

•        Annexure 27          ::        Administration Expenses

•        Annexure 28          ::        Selling Expenses

•        Annexure 29          ::        Depreciation Charges – as per Books (Total)

•        Annexure 30          ::        Depreciation Charges – as per Books (P & M)

•        Annexure 31          ::        Depreciation Charges - as per IT Act WDV (Total)

•        Annexure 32          ::        Depreciation Charges - as per IT Act WDV (P & M)

•        Annexure 33          ::        Interest and Repayment - Term Loans

•        Annexure 34          ::        Tax on Profits

•        Annexure 35          ::        Projected Pay-Back Period And IRR