Jharsuguda, Odisha: In a major push towards energy diversification and industrial expansion, Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL) are jointly investing ₹25,000 crore in a coal gasification project in Odisha. The announcement was made by Union Coal and Mines Minister G Kishan Reddy during an event attended by Prime Minister Narendra Modi and President Droupadi Murmu.
The project is being seen as a significant shift in India’s coal utilization strategy, moving beyond traditional power generation to higher-value industrial applications.
Coal Gasification to Drive Fertiliser and Chemical Production
The proposed coal gasification initiative will convert coal into synthesis gas (syngas), which can be used for producing fertilizers, chemicals, and synthetic fuels.
According to the government, this shift is expected to:
- Strengthen domestic fertilizer production
- Reduce dependence on imported raw materials
- Promote downstream chemical industries
- Enhance value addition from India’s coal reserves
Minister G Kishan Reddy said the project will “open new opportunities in fertiliser production” and significantly boost industrial activity in Odisha.
Major Employment Push for Odisha
The government expects the large-scale investment to generate significant employment opportunities in the region, particularly in industrial and allied sectors.
Kishan Reddy highlighted that the project will contribute to local job creation while supporting broader economic development in coal-rich areas like Jharsuguda.
Centre’s ₹46,000 Crore Push for Coal Gasification
The Union government has also announced a broader allocation of ₹46,000 crore to promote coal gasification across India.
Officials stated that this initiative is part of a long-term strategy to:
- Diversify coal usage beyond electricity generation
- Improve energy efficiency
- Reduce import dependence in key sectors such as fertilizers and chemicals
The Centre is actively promoting coal gasification as a cleaner and more efficient method of utilizing domestic coal resources.
What is Coal Gasification?
Coal gasification is a process that converts coal into synthesis gas (syngas), a mixture of hydrogen, carbon monoxide, and other gases. This syngas can be used to produce:
- Fertilizers
- Chemicals
- Synthetic fuels
- Industrial raw materials
Experts consider it a key technology for unlocking the full value of India’s coal reserves while enabling industrial diversification.
Odisha Positioned as Emerging Industrial Hub
With this investment, Odisha is expected to strengthen its position as a major industrial and energy hub in India. The project is anticipated to attract further downstream investments and expand the state’s manufacturing ecosystem.
About BHEL
Bharat Heavy Electricals Limited is one of India’s largest public sector engineering and manufacturing enterprises, specializing in power generation equipment, industrial systems, and infrastructure solutions. The company plays a key role in India’s energy sector, contributing to thermal, hydro, and renewable power projects, along with emerging technologies such as gasification and clean energy systems.
About Coal India Limited (CIL)
Coal India Limited (CIL) is a Government of India-owned Maharatna company and the world’s largest coal producer. It plays a crucial role in India’s energy sector, supplying the majority of the country’s coal while gradually expanding into renewable energy projects like solar power to support long-term sustainability goals.
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