Odisha: BHEL, CIL to invest Rs 25,000 crore in coal gasification

BHEL and Coal India will jointly invest Rs 25,000 crore in a coal gasification project in Odisha. The initiative aims to create jobs, boost fertiliser production, and expand the use of coal beyond conventional power generation.

Union Coal and Mines Minister G Kishan Reddy on Saturday said Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL) are jointly investing Rs 25,000 crore in a coal gasification project in Odisha, marking a major step towards expanding the use of coal beyond conventional power generation.

New Chapter for Odisha's Coal Sector

Speaking to reporters in Jharsuguda during an event attended by Prime Minister Narendra Modi and President Droupadi Murmu, the Minister said 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.

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 said 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.

Centre's Push for Coal Gasification

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.

What is Coal Gasification?

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. (ANI)

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