Centre plans coal gasification-based urea policy to cut gas import dependence

The government is finalising a new policy to promote coal gasification-based urea manufacturing as part of efforts to reduce dependence on imported natural gas and boost self-reliance in fertiliser production, PTI reported.


An official said the policy is expected to be ready within a month.


"We are in the process of making our new policy for coal gasification-based urea manufacturing and are reaching towards that and within one month we will be ready for that," the official told PTI during a roadshow organised to promote the government’s coal gasification scheme.


The official said the move would help reduce dependence on imported natural gas, around 25 per cent of which is sourced from overseas markets.


"Since it is assured government business and we are highly dependent upon natural gases and as 25 per cent is imported from various countries that will be more beneficial for us in terms of self-reliance and foreign exchequer," the official said.


Coal Secretary Vikram Dev Dutt said the Ministry of Chemicals and Fertilisers has been working on the proposed urea policy for some time, but the process has gained urgency due to the current situation.


"The inputs were given from the Ministry of Coal that coal gasification to urea should also be included in the new urea policy, which is at a very advanced stage and should be through in a month," Dutt said.


Coal gasification-based urea production involves converting coal and pet coke into syngas — a mixture of hydrogen and carbon monoxide — through high-temperature oxidation. The hydrogen is then combined with nitrogen from air to produce ammonia, which is further processed into urea.


The process is being explored as an alternative to natural gas-based urea production.


The development comes amid a broader push by the government to diversify feedstock sources for fertiliser manufacturing and utilise India’s domestic coal reserves through gasification technologies.


A domestic coal-gasification company had earlier urged the government to place coal-based urea projects on par with gas-based plants, including through offtake assurance mechanisms and earmarking production capacities for the coal-gasification route.


In a letter to the government, Maharashtra-based New Era Cleantech Solution Pvt Ltd said coal-based urea projects should receive parity with gas-based plants under the policy framework.


The company plans to set up a 1.27 MMTPA coal gasification-based urea project at Bhadravati in Maharashtra’s Chandrapur district.


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