New Delhi, 19 June (H.S.): Prime Minister Narendra Modi will lay the foundation stone of a Rs 25,016 crore coal gasification project at Lakhanpur in Odisha's Jharsuguda district on Saturday (June 20), with the objective of strengthening India's energy security, promoting import substitution, and advancing industrial self-reliance.

In a statement issued on Friday, the Ministry of Coal said the Coal Gasification Incentive Scheme is expected to attract investments worth Rs 2.5 lakh crore to Rs 3 lakh crore across 25 projects in coal-producing regions and generate nearly 50,000 direct and indirect employment opportunities.

The Lakhanpur project marks a historic milestone as India's first commercial-scale coal-to-ammonium nitrate production facility. The project will be developed on approximately 350 acres of land under the possession of Mahanadi Coalfields Limited (MCL). All necessary statutory approvals have been obtained, and construction is expected to commence following the foundation stone-laying ceremony. The Ministry of Coal has approved the use of coal-bearing land for such projects and is providing financial assistance of Rs 1,350 crore under the incentive scheme.

According to the Ministry, the project is being developed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL). The plant will utilise indigenously developed coal gasification technology by BHEL to produce 2,000 tonnes of ammonium nitrate per day. In April, BCGCL and MCL, a subsidiary of Coal India Limited, signed a land lease agreement for the project.

Recognising the immense potential of coal gasification, the government has approved incentive schemes with a total outlay of up to Rs 46,000 crore to promote surface coal and lignite gasification projects across the country. The Lakhanpur project is expected to serve as a model for future coal gasification initiatives and contribute significantly to India's vision of becoming a self-reliant industrial and manufacturing powerhouse.

India is the world's second-largest producer and consumer of coal, while Coal India Limited is the world's largest coal-producing company. The country possesses the world's fifth-largest coal reserves, estimated at more than 400 billion tonnes. Harnessing these resources through coal gasification has the potential to transform India's industrial landscape while reducing dependence on imports of critical raw materials and industrial chemicals.

At present, India imports end-use and intermediate chemical products worth nearly Rs 2.7 lakh crore annually. Coal gasification is expected to reduce these imports, conserve foreign exchange, strengthen domestic manufacturing capabilities, and promote industrial growth and economic self-reliance.

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Hindusthan Samachar / Jun Sarkar