Maharashtra Cabinet Greenlights 290 Acres for Coal-to-Chemical Ventures in Nagpur
The Maharashtra state cabinet has given its official clearance to a significant proposal, allocating around 290 acres of land for coal-to-chemical projects. This land is situated in Linga village, which falls under the Kalmeshwar taluka in the Nagpur region. The primary focus of these projects is coal gasification, a process designed to extract syngas, also known as synthesis gas, along with various downstream derivatives such as hydrogen.
Adani Group's Major Investment in Coal Gasification
In a related development, the Adani Group has publicly announced its ambitious plans to establish a massive coal gasification plant at the same location in Linga. The projected investment for this plant is a staggering 70,000 crore rupees. Jeet Adani, a director at Adani Airports, confirmed these plans during his visit to Nagpur for the Advantage Vidarbha Khasdar Audyogik Mahotsav. He informed reporters that the company anticipates commencing work on this project within the current year. Furthermore, the Adani Group has outlined intentions for a second phase of the project, which would involve an equivalent level of investment.
Land Allocation Details and Government Terms
An official statement clarified that it remains uncertain whether the allocated land is specifically reserved for the Adani Group's project or if it is intended more broadly for any coal gasification ventures in the area. According to the cabinet's decision, the land in question is revenue land and will be provided as category 2 land. This transfer will occur upon payment of a consideration that aligns with the current market valuation. Importantly, the terms and conditions stipulate that any business entity undertaking a coal gasification project will not gain ownership rights over the land. Instead, they will be granted possession rights for the duration of the project.
National Push for Coal Gasification and Additional Projects
The government of India is actively promoting coal gasification projects across the country as part of its energy and industrial strategy. To support this initiative, the government has allocated 8,500 crore rupees as viability gap funding to enhance the financial feasibility of such projects. There have also been discussions regarding a potential increase in this allocation. Beyond the Linga project, there are four other coal gasification projects currently planned in the Vidarbha region, indicating a concentrated effort to develop this sector in Maharashtra.
