India Launches Rs 46,000 Crore Coal Gasification Push

The Government of India is expediting a national coal gasification program with a total outlay of Rs 46,000 crore to increase domestic production of fertilizers, gas, and chemicals. This initiative supports a broader target to gasify 100 million tonnes of coal annually by 2030. As part of this effort, the Union Cabinet recently approved a Rs 37,500 crore scheme specifically for surface coal gasification projects.

In Lakhanpur, Odisha, Bharat Coal Gasification and Chemicals Ltd (BCGCL) has commenced construction on a Rs 25,000-crore facility designed to produce 0.66 million tonnes of technical-grade ammonium nitrate annually. The project, a joint venture between Coal India and Bharat Heavy Electricals Ltd (BHEL), has already awarded Rs 15,000 crore in contracts to BHEL and Larsen & Toubro. The Ministry of Coal provided Rs 1,350 crore in financial assistance for the site, which is scheduled for commissioning by September 2029.

Beyond coal, the government is pursuing critical minerals for high-tech industries. This includes exploring mines in Argentina and developing a rare earth element corridor spanning Kerala, Tamil Nadu, Andhra Pradesh, and Odisha. Coal and Mines Minister G Kishan Reddy stated that the government is also encouraging Indian entrepreneurs to engage in the exploration and processing of these minerals abroad.