Two major coal gasification projects aimed at strengthening India’s industrial supply chains and energy independence were launched in Chandrapur district of Maharashtra with the performance of a Bhoomi Pujan ceremony by G Kishan Reddy, Union Minister of Coal and Mines, and Devendra Fadnavis, Chief Minister of Maharashtra.
The projects are among seven initiatives selected for financial incentives under a Government of India scheme promoting coal gasification technologies. Together, the two projects involve an investment of more than 10,000 crore rupees and are expected to process over 2.5 million metric tonnes of coal annually once operational.
The first project, being developed by Greta Energy, is an integrated steel plant based on gasification technology with a production capacity of 0.4 million tonnes per annum. The project will also include a carbon capture and utilisation system with a capacity of 1,490 tonnes per day.
The integrated steel complex will feature a coal gasification facility designed to produce coal based synthesis gas for direct reduced iron production. The project will be developed across an area of about 130 acres.
The second project, being implemented by New Era Cleantech Solutions, is an integrated coal gasification and clean fuels facility that will convert domestic coal into critical industrial chemicals and fuels used in sectors including fertilisers, mining, textiles and packaging.
Speaking on the occasion, G Kishan Reddy said coal gasification is emerging as a key pillar for India’s energy independence, industrial development and the broader national vision of a developed India by 2047.
He noted that four out of the seven coal gasification projects approved under the government scheme are being developed in Maharashtra, reflecting the state’s growing role in the country’s energy and industrial transformation.
The minister said coal gasification technology will help reduce imports of industrial chemicals and fuels, strengthen domestic supply chains and save foreign exchange.
He added that the two projects are expected to generate more than 2,000 direct jobs and around five times as many indirect employment opportunities across related sectors.
G Kishan Reddy expressed confidence that the projects will be completed within the stipulated timelines and will set new benchmarks in responsible mining and clean coal technologies.
Later during his visit, the minister inspected the mine closure site of the Murpar Underground Mine operated by Western Coalfields Limited.
Coal production at the Murpar mine began in 2003 and the mine was closed in 2022 after the area was declared part of the eco sensitive zone of the Tadoba Andhari Tiger Reserve.
Speaking during the inspection, G Kishan Reddy said that mine closure should not be viewed as the end of a mining project but as the beginning of sustainable development.
He emphasised that mine closure processes must be carried out scientifically and systematically to restore environmental balance and conserve natural resources in mined areas. He also stressed the importance of prioritising the interests of local communities in mine closure planning.
Harish Duhan, Chairman and Managing Director of Western Coalfields Limited, informed that about 9,95,926 tonnes of coal had been produced from the Murpar Underground Mine during its operational period.
The final mine closure plan was approved by the Western Coalfields Limited board on January 19, 2026. Around 426 employees who were working at the mine have been redeployed to other mining operations in the Umrer area.
Mining infrastructure at the site has been removed according to regulations, while the manager’s office and canteen building have been preserved for social use on the recommendation of the district administration.
Environmental monitoring activities have been completed and afforestation work covering five hectares of land will be undertaken with the support of the Tropical Forest Research Institute in Jabalpur between June and September 2026.
Eight free health camps were also organised for residents of nearby villages, benefiting around 715 people.
The Chandrapur District Administration established a Mine Closure Advisory Committee on June 12, 2025 to prepare a sustainable development plan for the area after mine closure.
The committee is working on environmental protection measures and initiatives to safeguard the interests of local communities. A social impact assessment is also being conducted to prepare a community development and livelihood plan for the region.
Following the site visit, G Kishan Reddy held a meeting with the District Collector and members of the Mine Closure Advisory Committee at the Chimur Municipal Office to review plans for the sustainable development of the area.
The meeting was attended by Sanoj Kumar Jha, Additional Secretary in the Ministry of Coal, B Sairam, Chairman of Coal India Limited, along with senior officials of the Ministry of Coal, Coal India Limited and Western Coalfields Limited.
The Ministry of Coal stated that Coal India Limited and its subsidiaries, including Western Coalfields Limited, are continuously working towards scientific mine closure practices while ensuring the country’s energy security with minimal environmental impact.
