New Delhi, June 19 (IANS). In a major step towards strengthening India’s energy security, reducing imports and promoting industrial self-reliance, Prime Minister Narendra Modi will lay the foundation stone of Rs 25,016 crore coal gasification project at Lakhanpur in Jharsuguda district of Odisha on June 20. This information has been shared in an official statement on Friday.
The Lakhanpur project is a historic achievement as India’s first commercial-scale ammonium nitrate production facility from coal, the statement said. 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 project will produce 2,000 tonnes of ammonium nitrate per day using coal gasification technology indigenously developed by BHEL.
The project will serve as a model for future coal gasification ventures and contribute significantly to India’s vision of becoming a self-reliant manufacturing and industrial powerhouse. The laying of the foundation stone of Lakhanpur Project reflects the Government’s commitment to promote clean coal technologies, extract maximum value from domestic resources and create a strong industrial ecosystem in line with the vision of ‘Atmanirbhar Bharat’.
According to the statement, coal gasification is becoming an important part of India’s strategy which aims to strengthen energy security, reduce dependence on imported essential raw materials, add value to products made from domestic coal resources and help in the development of downstream industries.
In this process, coal is converted into synthesis gas (syngas), which can be used to produce a variety of value-added products such as methanol, urea, ammonium nitrate, synthetic natural gas and other chemical feedstock. It has the potential to accelerate industrial development, reduce dependence on imported raw materials, and strengthen the country’s energy and economic security.
According to the statement, India is the second largest producer and consumer of coal in the world, and Coal India Limited is the largest coal producing company in the world. India has the 5th largest coal reserves in the world, which are more than 400 billion tonnes. By properly utilizing these resources through coal gasification, the industrial scenario of the country can be changed to a great extent, and the dependence on imports for essential feedstock and chemicals can also be reduced.
Recognizing the transformative potential of coal gasification, the Government of India has approved incentive schemes totaling up to Rs 46,000 crore to promote surface coal and lignite gasification projects across the country with the objective of accelerating setting up of coal gasification projects across the country, promoting use of domestic coal for strategic industrial and chemical products and reducing import of natural gas, methanol, ammonia and other essential feedstocks. Dependency has to be reduced.
The statement further said that India currently imports end-use and intermediate chemical products worth about Rs 2.7 lakh crore every year. Coal gasification offers a huge opportunity to reduce these imports, save considerable foreign exchange and strengthen domestic manufacturing capabilities as well as promote industrial growth and economic self-reliance.
This initiative to promote coal gasification is expected to bring in investment of Rs 2.5 to 3 lakh crore and create around 50,000 direct and indirect employment opportunities through 25 projects in coal-producing areas.
–IANS
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