₹10,000 Crore Coal Gasification Projects Launched in Chandrapur, Maharashtra

The two projects are among seven coal gasification initiatives selected for financial incentives under the Government of India scheme designed to promote clean coal technologies.

India’s push toward cleaner coal technologies and energy self-reliance received a major boost with the Bhoomi Pujan of two large coal gasification projects in Chandrapur, Maharashtra, led by Union Minister of Coal and Mines G. Kishan Reddy and Maharashtra Chief Minister Devendra Fadnavis.

The projects, launched during the second day of the Union Minister’s two-day visit to Maharashtra, are part of the Government of India’s coal gasification incentive scheme, aimed at reducing import dependence and promoting advanced coal utilisation technologies.

Together, the projects represent an investment of over ₹10,000 crore and are expected to strengthen India’s industrial supply chains while promoting cleaner coal-based energy solutions.

Major coal gasification projects to transform industrial landscape

The two projects are among seven coal gasification initiatives selected for financial incentives under the Government of India scheme designed to promote clean coal technologies.

Integrated Steel Plant using Gasification Technology

The first project, being developed by Greta Energy, will establish a 0.4 million tonnes per annum (MTPA) integrated steel plant based on coal gasification technology.

The facility will include:

• A coal gasification unit producing syngas

• Direct Reduced Iron (DRI) production systems

• A carbon capture and utilisation system (CCUS) with a capacity of 1,490 tonnes per day

Spread across approximately 130 acres, the integrated steel complex will utilise coal-based syngas as a cleaner feedstock for steel manufacturing, reducing reliance on traditional carbon-intensive processes.

Clean fuels and chemical production project

The second project, being implemented by New Era Cleantech Solutions Pvt Ltd, will establish an integrated coal gasification and clean fuels facility.

The plant will convert domestic coal into critical industrial chemicals and fuels used in several sectors, including:

• Fertilisers

• Mining

• Textiles

• Packaging

Once operational, the two projects together will process more than 2.5 million metric tonnes of coal annually.

Coal gasification key to India’s energy independence

Addressing the gathering, Union Minister G. Kishan Reddy said coal gasification is emerging as a crucial component of India’s strategy for energy independence, industrial development and the vision of “Viksit Bharat.”

He highlighted that four out of the seven approved coal gasification projects in India are being developed in Maharashtra, reinforcing the state’s role as a major energy and industrial hub.

The Minister said the technology will help India reduce imports of critical industrial inputs, save foreign exchange and strengthen domestic supply chains.

Massive investment and employment generation

The Chandrapur projects are expected to generate significant economic benefits for the region.

According to the Minister:

• More than ₹10,000 crore is being invested in the two projects

• Over 2,000 direct jobs will be created

• Indirect employment could reach five times the direct workforce, benefiting logistics, services and ancillary industries

Reddy expressed confidence that the projects will be completed within their scheduled timelines and will set new benchmarks for responsible mining and clean coal technology deployment in India.

Murpar mine closure highlights sustainable mining practices

During the visit, the Union Minister also inspected the mine closure site of Western Coalfields Limited’s (WCL) Murpar Underground Mine.

Coal production at the Murpar mine began in 2003, and the mine was officially closed in 2022 after the area was declared part of the Eco-Sensitive Zone of the Tadoba-Andhari Tiger Reserve.

Speaking at the site, the Minister said mine closure should not be viewed as the end of a project but rather the beginning of a new phase focused on environmental restoration and sustainable development.

He emphasised that closure plans must be implemented scientifically and systematically to restore ecological balance and ensure responsible use of natural resources.

The Minister also stressed that local communities must remain central to mine closure planning, with projects aimed at transforming former mining areas into socially and economically beneficial assets.

Details of Murpar mine closure and rehabilitation

According to WCL Chairman-cum-Managing Director Harish Duhan, the Murpar Underground Mine produced approximately 995,926 tonnes of coal during its operational lifetime.

Key developments in the mine closure process include:

• Approval of the Final Mine Closure Plan by the WCL Board on 19 January 2026

• Redeployment of 426 employees to other mines in the Umrer area

• Removal of all mining infrastructure in compliance with regulations

However, certain structures such as the mine manager’s office and canteen building have been preserved for community use, following recommendations from the district administration.

Environmental restoration measures are also underway.

Environmental monitoring and afforestation efforts

Environmental rehabilitation at the site includes:

• Completion of three years of environmental monitoring

• Afforestation of 5 hectares of land, to be undertaken between June and September 2026 in collaboration with the Tropical Forest Research Institute, Jabalpur

In addition, eight free medical camps were organised for nearby villages, benefiting around 715 residents, as part of community outreach initiatives.

Community-focused development after mine closure

The Chandrapur District Administration established a Mine Closure Advisory Committee (MCAC) on 12 June 2025 to oversee sustainable development of the region after mining operations ceased.

The committee has prepared a development plan focusing on:

• Environmental protection

• Community welfare

• Sustainable land use

A Social Impact Assessment has also been initiated to evaluate the effects of the mine closure and to design a Community Development and Livelihood Plan for affected communities.

Stakeholder consultations held in Chimur

Following the site visit, Union Minister G. Kishan Reddy held a meeting with the Mine Closure Advisory Committee and district officials at the Chimur Municipal Office.

Participants included:

• Sanoj Kumar Jha, Additional Secretary, Ministry of Coal

• B. Sairam, Chairman, Coal India Limited

• Senior officials from the Ministry of Coal, Coal India Limited and Western Coalfields Limited

• Representatives of voluntary organisations, consultants and local village leaders

The meeting focused on long-term development opportunities in the area following mine closure.

India advancing scientific mine closure and energy security

The Ministry of Coal emphasised that Coal India Limited and its subsidiaries, including Western Coalfields Limited, are working actively to implement scientific mine closure practices across the country.

The government aims to ensure that while coal continues to support India’s energy security and industrial growth, environmental impacts are minimised and former mining areas are restored for sustainable use.