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21 Jun 2026
BHEL, Coal India to Invest ₹25,000 Crore in Odisha Coal Gasification Project
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Business

BHEL, Coal India to Invest ₹25,000 Crore in Odisha Coal Gasification Project

🗓 21 Jun 2026, 02:02 AM 👁 1

Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL) are set to invest a combined Rs 25,000 crore in a significant coal gasification project located in Odisha. This initiative aims to broaden the applications of coal beyond traditional power generation.

Union Coal and Mines Minister G Kishan Reddy announced on Saturday that state-owned enterprises Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL) will jointly invest Rs 25,000 crore in a coal gasification project in Odisha. This substantial investment signifies a major push towards diversifying the utilization of coal resources in India.

The project is poised to explore and expand the use of coal in ways that move beyond its conventional role in power generation. Coal gasification is an industrial process that converts coal into synthesis gas (syngas), a mixture primarily composed of hydrogen and carbon monoxide, which can then be used to produce electricity, chemicals, and fuels.

This collaboration between BHEL and CIL underscores a strategic effort to leverage India's coal reserves for advanced industrial applications, potentially reducing reliance on imported fuels and promoting domestic manufacturing capabilities.