India Eyes Coal Gasification As Substitute For Energy Imports Amid Iran War Supply Shocks

BCGCL and MCL have inked a historic land lease for a Coal to 2000 TPD Ammonium Nitrate project at Lakhanpur, Odisha, India’s first coal gasification facility using BHEL’s indigenous technology. Union Minister of Coal and Mines G Kishan Reddy stated that coal gasification can curb imports of petroleum, ammonia, and fertilisers by producing syngas and converting it into multiple products. The Cabinet-approved ₹8,500 crore incentive scheme supports both PSUs and private players, while the National Coal Gasification Mission targets 100 million tonnes by 2030. India’s vast coal reserves of around 400 billion tonnes underpin this initiative, which aims to boost energy security, industrial growth, and reduce dependency on volatile global energy markets.