PM to lay foundation stone of India’s First Commercial-Scale Coal-to-Ammonium Nitrate Project in Odisha | Current Affairs | Vision IAS

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In Summary

  • India's first coal gasification project by BCGCL (BHEL-CIL JV) will produce 2,000 TPD ammonium nitrate using indigenous technology.
  • Coal gasification can reduce India's annual chemical imports of ~Rs 2.7 lakh crore, catalyse Rs 2.5-3 lakh crore investment, and create 50,000 jobs.
  • India aims to gasify 100 MT coal by 2030 via the National Coal Gasification Mission and other incentive schemes.

In Summary

Project is being developed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture of Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL). 

  • It will produce 2,000 tonnes per day of ammonium nitrate using indigenously developed coal gasification technology by BHEL.

About Coal Gasification 

  • Meaning: Process that converts coal into synthesis gas (syngas), to be used to produce a wide range of value-added products like methanol, urea, ammonium nitrate, synthetic natural gas, and other chemical feedstocks. 

Significance of Coal Gasification

  • Reduce Imports: India currently imports end-use and intermediate chemical products worth ~ Rs 2.7 lakh crore annually. 
  • Catalyse Investments: Gasification would catalyse investment worth Rs 2.5 to 3 lakh crore and create around 50,000 direct/indirect employment across 25 projects in coal-bearing regions.
  • Huge Potential: India is world’s second largest producer and consumer of coal; is endowed with world's fifth-largest coal reserves of over 400 billion tonnes
  • Ensure Optimal utilization of indigenous natural resources: For long term economic growth and competitive advantages like Shale gas revolution in USA, Coal to Chemicals in China, etc. 

Key Initiatives towards promoting Coal Gasification in India

  • National Coal Gasification Mission: Aims to gasify 100 million tonnes of coal by 2030. 
  • Scheme for Promotion of Surface Coal/Lignite Gasification Projects.
  • Incentive scheme for promotion of coal and lignite gasification projects (2024) for PSUs and private sector with an outlay of ₹ 8,500 crore.
  • India’s First Ever Pilot project for Underground Coal Gasification in Jharkhand (2024). 
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RELATED TERMS

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Underground Coal Gasification (UCG)

A process to convert solid coal into synthetic gas (syngas) underground using heat, pressure, and steam or oxygen. It is considered a cleaner alternative to direct coal combustion with lower sulfur emissions.

National Coal Gasification Mission

A mission launched by the Ministry of Coal, Government of India, with the objective of gasifying 100 Million Tonnes (MT) of coal by 2030 to enhance energy security and promote cleaner coal technologies.

Coal India Limited (CIL)

A state-owned enterprise that is the largest coal-producing company in the world. It plays a crucial role in India's energy security and is a significant player in the global coal market.

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