India Advances Coal Gasification Mission With Rs 20,000 Crore Major Chandrapur Integrated Complex

New Era Cleantech Solutions has commenced development of India's first greenfield integrated coal gasification and carbon capture complex at Bhadrawati in Chandrapur, Maharashtra, with an investment of Rs 20,000 crore.

Union Minister for Coal and Mines G Kishan Reddy and Maharashtra Chief Minister Devendra Fadnavis laid the foundation stone for the project yesterday (14 March), marking a significant milestone under the government's coal gasification mission.

The project, which spans 1,650 acres in the Bhadrawati Industrial Area, will process more than five million metric tonnes of coal annually once operational.

The facility will produce ammonia, ammonium nitrate and mono ethylene glycol, converting India's abundant domestic coal resources into critical industrial inputs.

The development comes at a time when global gas supplies have been disrupted following the West Asia conflict and constraints around the strategic Strait of Hormuz.

New Era Cleantech has secured the highest government funding of Rs 1,000 crore under Category-II of the financial incentive scheme for coal gasification, alongside an additional Rs 100 crore for a separate coal-to-ethanol demonstration project.

The Chandrapur complex represents one of the first private-sector initiatives under the government's Rs 8,500-crore coal gasification incentive programme, which forms part of the Coal Gasification Mission launched in 2020.

The facility is expected to contribute to reducing India's dependence on imported chemicals, fertilisers and fuels whilst strengthening long-term energy security.

The project utilises carbon capture, utilisation and storage technology, aligning with India's national missions on clean energy and decarbonisation.

Coal will be sourced from Western Coalfields Limited, which surrounds the plant on three sides, whilst the Maharashtra government has allocated the land through the Maharashtra Industrial Development Corporation.

The initiative is projected to generate 15,000 jobs in Chandrapur district and forms part of broader efforts to gasify 100 million tonnes of coal by 2030.

The project marks a significant step in India's transition from conventional coal combustion to cleaner gasification technologies, with the facility set to become operational within three to four years following completion of environmental clearances and detailed feasibility reports.

Please click here to add Swarajya as your preferred and trusted news source on Google