BHEL, Coal India investing Rs 25,000 crore in Odisha coal gasification project: G Kishan Reddy
Jharsuguda, June 20
Union Coal and Mines Minister G Kishan Reddy on Saturday said Bharat Heavy Electricals Limited and Coal India Limited 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.
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.
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.
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
Reader Comments
I'm not convinced about coal gasification given the environmental costs. Coal is still coal - even if you convert it to syngas, it produces CO2. India has massive solar potential, why not invest more in renewables instead of doubling down on fossil fuels? Just a thought from a concerned observer.
Rs 25,000 crore is a big deal! If this reduces our urea import bill and makes farmers self-reliant, it's worth it. But please ensure proper rehabilitation for any displaced families and strict environmental norms. Odisha has seen too much mining without adequate compensation.
Good initiative but I hope the project doesn't end up benefiting only large corporations. The state government should ensure that local MSMEs and small businesses get opportunities in the downstream supply chain. Also, what about the water requirements for gasification? Odisha faces water stress in some districts.
As someone who works in the energy sector, coal gasification is definitely a step forward for India's energy security. Syngas can be used for many purposes and it's cleaner than burning coal directly. But let's be honest - the Rs 46,000 crore central support needs to be monitored carefully to avoid cost overruns and delays. These large PSU projects often get stuck in red tape.
Jharsuguda needs this! The region has seen industrial growth but jobs haven't kept pace. If this project creates direct employment for 5,000-10,000 people and indirect for many more, it'll transform lives. But babu log should ensure skill training for local youth so they don't get left out. 🤞
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