Union Coal and Mines Minister G Kishan Reddy announced on Saturday that Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL) are jointly investing Rs 25,000 crore in a coal gasification project in Odisha. This marks a significant step towards expanding the use of coal beyond conventional power generation.
Event Highlights
Speaking to reporters in Jharsuguda during an event attended by Prime Minister Narendra Modi and President Droupadi Murmu, the Minister stated that the initiative would open new opportunities in fertiliser production while creating jobs in the region.
"Today, Prime Minister Narendra Modi and the President Droupadi Murmu have ushered in a new chapter for Odisha's coal sector. Moving beyond the traditional use of coal, new avenues will now open up through coal gasification," Reddy said.
Investment Details
Highlighting the scale of investment, the Minister said, "Today, BHEL and Coal India Limited are jointly investing Rs 25,000 crore in this initiative." He added that the project is expected to strengthen downstream industrial activity in the state and generate employment opportunities.
"This will facilitate fertiliser production and create employment opportunities for local people, proving highly beneficial for Odisha," Reddy added.
Government Support
The Minister also underlined the Centre's broader push towards coal gasification as part of efforts to diversify coal utilisation and reduce import dependence in sectors such as fertilisers and chemicals. "The Central Government is providing Rs 46,000 crore for coal gasification," he said.
Coal gasification converts coal into synthesis gas, or syngas, which can be used to produce chemicals, fertilisers, synthetic fuels and other industrial products. The technology is seen as a way to enhance the value of India's vast coal reserves while supporting industrial development.
The Centre has been promoting coal gasification projects to encourage cleaner and more efficient utilisation of domestic coal resources and reduce reliance on imported feedstock for key industries.
