Bharat Heavy Electricals Ltd (BHEL) and Coal India Ltd (CIL) are set to jointly invest Rs 25,000 crore in a large-scale coal gasification project in Odisha, reinforcing the country’s efforts to diversify the use of coal beyond conventional power generation.
The proposed project will leverage coal gasification technology to convert coal into synthesis gas (syngas), a key feedstock for manufacturing fertilisers, chemicals, synthetic fuels and other value-added products. The initiative is expected to strengthen domestic fertiliser production, reduce dependence on imports and create new opportunities for downstream industries.
The investment was announced by Union Coal and Mines Minister G Kishan Reddy during a public event in Jharsuguda attended by Prime Minister Narendra Modi and President Droupadi Murmu. The Minister stated that the project is expected to generate employment opportunities in the region while contributing to Odisha’s industrial development.
Coal gasification has emerged as a strategic priority for the Government of India as it enables greater value addition from the country’s abundant coal reserves while supporting cleaner and more efficient utilisation of the resource. The technology is also expected to play an important role in enhancing energy security and promoting industrial self-reliance.
The Minister further noted that the Centre has earmarked Rs 46,000 crore to promote coal gasification projects across the country, underscoring the government’s long-term commitment to accelerating the adoption of advanced coal utilisation technologies.