The inter clay lignite waste from lignite mining in Giral block of Barmer district of Western Rajasthan has been transformed into marketable high calorific carbonaceous fuel, using a selective breakage technique. The coal can be cleaned near the mine mouth without using water; it will avoid transportation of rocks to a distance and also avoid the water pollution problem associated with the slurry ponds. The dry process will be economical as it will not utilize water and, thus, no dewatering or drying of the product will be required. Experiments were conducted with a coal sample containing 9.07% fixed carbon, 33.43% ash, 22.50% volatile matter, and marginally lower calorific value 1,869 Kcal/kg. The preliminary data indicate that by decreasing the size of coal fraction, the energy contents increasing gradually. The highest result was obtained for the size fraction (-) 2.36 to (+) 1 mm of lignite sample.