Bhubaneswar, Jun 19: In a major push for energy security and industrial self‑reliance, 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 tomorrow, officials said on Friday.

Energy Security and Import Substitution

Coal gasification is emerging as a strategic pillar in India’s energy roadmap. The process converts coal into synthesis gas (syngas), which can be used to produce methanol, urea, ammonium nitrate, synthetic natural gas, and other chemical feedstocks. By leveraging domestic coal reserves, the initiative aims to reduce dependence on imported raw materials worth nearly Rs2.7 lakh crore annually.

National Strategy and Incentives

India, the world’s second-largest coal producer, holds the fifth-largest reserves globally. Recognizing coal gasification’s transformative potential, the Centre has approved incentive schemes worth Rs46,000 crore to promote surface coal and lignite gasification projects. These schemes are expected to catalyse investments of Rs2.5–3 lakh crore and generate around 50,000 jobs across 25 projects in coal-bearing regions.

The Lakhanpur Milestone

The Lakhanpur project, developed by Bharat Coal Gasification and Chemicals Limited (BCGCL)—a joint venture of Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL)—will produce 2,000 tonnes per day of ammonium nitrate using indigenously developed technology. The project will be spread over 350 acres under Mahanadi Coalfields Limited (MCL) possession, with land-leasing agreements and clearances already in place. The Union Ministry of Coal is extending Rs1,350 crore support under its incentive scheme.

Towards Aatmanirbhar Bharat

The project is expected to serve as a model for future coal gasification ventures, aligning with the government’s vision of Aatmanirbhar Bharat. By maximizing value from domestic coal resources, promoting clean coal technologies, and building a resilient industrial ecosystem, the Lakhanpur project underscores India’s commitment to industrial self-reliance and energy security.
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PM Modi, Prez Murmu to Visit Odisha

PM Modi will be on a visit to Odisha tomorrow. President Droupadi Murmu will also join the Prime Minister during his one-day visit to Odisha. The President and Prime Minister will participate in a programme at Rairangpur in Mayurbhanj district, marking the completion of two years of the BJP Government of Odisha.

During the programme, the President and Prime Minister will inaugurate and lay foundation stones for development projects worth over Rs47,000 crore, spanning energy, infrastructure, road connectivity, drinking water, health, education, tourism, and irrigation.