en.Wedoany.com Reported - Indian Prime Minister Narendra Modi will lay the foundation stone for a coal gasification project worth INR 250.16 billion on June 20, 2026, at Lakhanpur in the Jharsuguda district of Odisha. This project is India's first commercial-scale coal-to-ammonium nitrate facility, developed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL). It will utilize BHEL's indigenously developed coal gasification technology to produce 2,000 metric tons of ammonium nitrate per day.
Coal gasification is regarded as a key pathway for India to enhance energy security, reduce dependence on imported critical raw materials, and promote value addition from domestic coal resources. This process converts coal into synthesis gas, which can be used to produce various chemical products such as methanol, urea, ammonium nitrate, and synthetic natural gas, potentially reducing reliance on imported raw materials and strengthening national energy and economic security.
India is the world's second-largest producer and consumer of coal, with coal reserves exceeding 400 billion metric tons, ranking fifth globally. Coal India Limited is the world's largest coal producer. Utilizing these resources through coal gasification could transform the nation's industrial landscape while reducing import dependence on critical raw materials and chemicals.
The Indian government has approved an incentive plan with a cumulative expenditure of up to INR 460 billion to promote surface coal and lignite gasification projects nationwide, accelerate the establishment of coal gasification facilities, encourage the use of domestic coal for strategic industrial and chemical products, and reduce dependence on imports of natural gas, methanol, ammonia, and other critical raw materials.
India currently imports end-use and intermediate chemical products worth approximately INR 2.7 trillion annually. Coal gasification is expected to provide opportunities to reduce imports, save foreign exchange, and strengthen domestic manufacturing capabilities, while supporting industrial growth and economic self-reliance. The incentive plan is projected to catalyze investments of INR 2.5 to 3 trillion and create approximately 50,000 direct and indirect jobs across 25 projects in coal-producing regions.
In April this year, BCGCL signed a land lease agreement with Mahanadi Coalfields Limited, a subsidiary of Coal India Limited, for the project to be built on approximately 350 acres of land under its jurisdiction. The project has obtained the necessary approvals and is expected to commence construction after the foundation-laying ceremony. The Ministry of Coal has permitted the use of land in coal-producing areas for such projects and will provide support of INR 13.5 billion under the incentive plan.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
