Coal India and Bharat Heavy Electricals Limited (BHEL) have started building a ₹25,000 crore ($3 billion) coal gasification project. This project aims to produce 0.66 million tonnes of ammonium nitrate each year. It is one of India's first commercial uses of local pressurized fluidized bed gasification technology for chemical production. Coal India holds a 51% stake in the project, while BHEL owns the remaining 49%, according to the companies.
Key Details
The coal gasification industry is looking for guaranteed buyers and cheaper financing to encourage more investments. Industry representatives have asked for long-term coal supply contracts. These contracts should detail quantity, quality, pricing, and delivery schedules. They also stressed the need for reliable infrastructure, such as water, power, and transport, to support growth in the sector, as reported by Moneycontrol.
Background
This project is expected to boost India's chemical production and reduce dependence on imports. The launch supports government efforts to increase domestic production and energy security. The coal gasification process turns coal into gas, which can be used for various purposes, including making fertilizers.
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The project could affect the chemical and fertilizer sectors by increasing domestic supply and possibly lowering prices. Investors might see changes in stock performance for companies involved in coal and chemical production as the project moves forward.
Watch for updates on the project's progress and any news about financing or partnerships that could impact the coal gasification sector.
Based on reporting by: moneycontrol.com