PM to Lay Foundation Stone for Rs 25,016-Crore Coal Gasification Project in Odisha on June 20
New Delhi, June 19(TNT): Prime Minister Narendra Modi will lay the foundation stone for Rs 25,016-crore coal gasification project at Lakhanpur in Odisha’s Jharsuguda district on Saturday , marking a major step towards strengthening India’s energy security, reducing import dependence and promoting industrial self-reliance.
The project, being developed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture of Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL), will be India’s first commercial-scale coal-to-ammonium nitrate facility.
According to the Coal Ministry, the project will produce 2,000 tonnes of ammonium nitrate per day using indigenously developed coal gasification technology.
Coal gasification converts coal into synthesis gas (syngas), which can be used to manufacture products such as methanol, urea, ammonium nitrate, synthetic natural gas and other chemical feedstocks.
The technology is expected to help reduce dependence on imported raw materials and strengthen domestic manufacturing.
India, which possesses the world’s fifth-largest coal reserves exceeding 400 billion tonnes, is promoting coal gasification as part of its strategy to enhance energy security and maximise value addition from domestic coal resources.
The Centre has approved incentive schemes with a total outlay of up to Rs 46,000 crore to promote surface coal and lignite gasification projects across the country.
Officials said India currently imports end-use and intermediate chemical products worth around Rs 2.7 lakh crore annually. Coal gasification is expected to reduce import dependence, generate foreign exchange savings and support industrial growth.
The government estimates that coal gasification initiatives could attract investments of Rs 2.5 lakh crore to Rs 3 lakh crore and generate around 50,000 direct and indirect jobs across 25 projects in coal-bearing regions.
The Lakhanpur project will be established on about 350 acres of land under the possession of Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India.
The Union Ministry of Coal is providing financial support of Rs 1,350 crore under its coal gasification promotion scheme.
Officials said the project is expected to serve as a model for future coal gasification ventures and contribute to the country’s goal of achieving self-reliance in strategic industrial and chemical sectors.
TNT KM
