New Era Cleantech Begins Work on ₹20,000-Crore Coal Gasification Project in Maharashtra

New Era Cleantech Solutions Pvt. Ltd. has begun work on India’s first greenfield integrated coal gasification and carbon capture complex at Bhadrawati in Maharashtra’s Chandrapur district, with an investment of about ₹20,000 crore.

Spread across around 1,650 acres, the facility will convert domestic coal into industrial chemicals and fuels used in sectors such as fertilisers, mining, textiles and packaging. Once operational, the complex is expected to process more than 5 million tonnes of coal annually.

In its first phase, the project will produce ammonia, ammonium nitrate and monoethylene glycol, key industrial chemicals widely used in fertilisers and manufacturing. Future expansion plans include products such as dimethyl ether (DME), urea, sustainable aviation fuel (SAF) and ethanol.

The project was first cleared by the Government of Maharashtra in 2022 and is positioned as part of India’s broader push for industrial self-reliance under the Atmanirbhar Bharat initiative.

The development also comes at a time when global gas markets have faced disruptions due to geopolitical tensions affecting energy supply routes, including the Strait of Hormuz, a key corridor for LNG trade.

According to the company, converting India’s abundant coal reserves into industrial inputs could help reduce dependence on imported chemicals, fertilisers and fuels, while strengthening long-term energy security.

In parallel, another coal gasification project linked to a 0.4-million-tonne-per-annum integrated steel plant is being developed by GRETA Energy Limited. The facility will include a carbon capture, utilisation and storage (CCUS) system with a capacity of about 1,490 tonnes per day, with coal-based syngas planned for use in direct reduced iron (DRI) production.