Centre Prioritising Energy Security With Coal Gasification

25 Jun 2026 CW Team

India has the fifth-largest coal reserve in the world, and the minister noted that electricity is generated from coal in about 73 per cent of thermal power projects across the country. He argued that maximising value from coal reserves can strengthen industrial competitiveness and provide feedstock for chemical and fertiliser industries. The policy shift is presented as a strategic response to global market volatility and energy security concerns.

The prime minister has laid the foundation stone for the Rs 250.16 billion (bn) Lakhanpur coal gasification project at Jharsuguda in Odisha, which the minister said represents a major step towards import substitution and industrial self-reliance. The project is framed as contributing to the vision of an Aatmanirbhar and Viksit Bharat by converting domestic resources into higher-value products. Officials expect the scheme to catalyse investment in associated infrastructure and downstream industries.

The minister also outlined the National Critical Mineral Mission as a complementary effort to secure vital resources at home and abroad, citing Neyveli Lignite Corporation's rare earth exploration in Tamil Nadu as an example. He noted that Neyveli Lignite Corporation (NLC) has signed a memorandum of understanding with Bhabha Atomic Research Centre (BARC) to support such initiatives and that these collaborations aim to ensure inclusive growth. The broader gasification push is described as a policy to bolster energy security while supporting industrial expansion.

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Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and the minister noted that electricity is generated from coal in about 73 per cent of thermal power projects across the country. He argued that maximising value from coal reserves can strengthen industrial competitiveness and provide feedstock for chemical and fertiliser industries. The policy shift is presented as a strategic response to global market volatility and energy security concerns. The prime minister has laid the foundation stone for the Rs 250.16 billion (bn) Lakhanpur coal gasification project at Jharsuguda in Odisha, which the minister said represents a major step towards import substitution and industrial self-reliance. The project is framed as contributing to the vision of an Aatmanirbhar and Viksit Bharat by converting domestic resources into higher-value products. Officials expect the scheme to catalyse investment in associated infrastructure and downstream industries. The minister also outlined the National Critical Mineral Mission as a complementary effort to secure vital resources at home and abroad, citing Neyveli Lignite Corporation's rare earth exploration in Tamil Nadu as an example. He noted that Neyveli Lignite Corporation (NLC) has signed a memorandum of understanding with Bhabha Atomic Research Centre (BARC) to support such initiatives and that these collaborations aim to ensure inclusive growth. The broader gasification push is described as a policy to bolster energy security while supporting industrial expansion.

Infrastructure Urban

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BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..

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Infrastructure Energy

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