India is opening up its coal gasification sector to global technologies—even easing earlier restrictions on sourcing certain foreign equipment — while simultaneously promoting indigenous solutions, as companies step up talks with international partners to deploy best-in-class systems.
Union Coal and Mines Minister G Kishan Reddy said firms are actively engaging with global players to deploy cutting-edge solutions. “Companies, both private and government, are in talks with counterparts to bring the best technology to India,” he said.
Global Benchmarking
The minister noted that the government is pursuing a coordinated strategy to ensure access to advanced equipment and expertise. “The government is facilitating a ‘Whole of Government’ approach… to ensure the best equipment and expertise are available,” he said, referring to earlier easing of restrictions on sourcing certain international technologies from China.
At the same time, Reddy emphasised the parallel push for indigenous capability. He highlighted that Bharat Heavy Electricals Ltd (BHEL) has developed a coal gasification product after nearly two decades of research and development, while private players are also advancing domestic technologies.
India is benchmarking its gasification roadmap against global leaders such as Germany, the US, China, and Australia, as it seeks to diversify coal use beyond combustion and reduce import dependence in fertilisers and chemicals. The minister described the initiative as “not merely a business venture but a vital national project.”
The Centre has approved an outlay of Rs 8,500 crore to promote coal gasification, with seven projects already finalised, including three where groundwork has been completed.
The push comes as India’s coal sector shifts from scarcity to surplus, with current stocks at 224 million tonnes—equivalent to around 90 days of supply.
Indigenous Milestone
In a key project milestone, a land lease agreement has been signed between Bharat Coal Gasification and Chemicals Ltd (BCGCL) and Mahanadi Coalfields Ltd (MCL) for a Rs 25,000 crore coal-to-ammonium nitrate project at Lakhanpur in Odisha.
Spread over 350 acres, the project will produce 2,000 tonnes per day of ammonium nitrate and marks India’s first coal gasification initiative based on indigenously developed technology by BHEL, reflecting a shift towards domestic innovation alongside global collaboration.
The project has received Rs 1,350 crore in financial support, with major engineering packages awarded to BHEL and Larsen & Toubro. Site development activities are underway to ensure adherence to timelines.