New Era Cleantech aims to complete financial closure and place EPC orders for the first phase of its ₹20,000 crore coal gasification project by December 2026. According to reports from Business Standard, the facility near Nagpur will gasify 5 million tonnes of coal annually to produce critical industrial chemicals and fuels used across sectors such as fertilisers, mining, textiles, and packaging. The project is being developed in two phases requiring total investment of around $3 billion over three years.
In the first phase, the company will invest around $1 billion to gasify 1.2-1.6 million tonnes of coal, followed by an additional $2 billion investment in the second phase. As reported by Business Standard, founder and managing director Balasaheb Darade explained that "this will be doubled in the second phase. Overall, we are looking at a capacity to gasify around 5 MTPA coal when the plant is fully commissioned." The first phase will produce ammonia, ammonium nitrate, and mono ethylene glycol, with future expansion into products including dimethyl ether (DME) for LPG blending, urea, sustainable aviation fuel (SAF), and ethanol.
The project has secured viability gap funding of ₹1,100 crore from the Government of India and holds the status of 'Ultra Mega Project' from the Maharashtra government. According to Business Standard, the company has been allotted 1,650 acres of land from the Maharashtra Industrial Development Corporation and the Bhandak West coal mine, along with coal linkage from Coal India. The project has also obtained environment clearance for 5 MT coal gasification capacity.
The ongoing West Asia crisis and energy shock have exposed India's import dependence for key fuel inputs, prompting government policy efforts to promote coal gasification for cost reduction and self-reliance. As reported by Business Standard, the Union Cabinet approved a ₹37,500 crore incentive scheme to promote coal gasification, marking India's biggest push to build a domestic coal-to-chemical ecosystem with potential to attract ₹3 lakh crore in investment. The company is strategising to ensure 80-90% of equipment sourcing is local and expects to start EPC negotiations once the current engineering phase is completed. The recent government approval of the ₹37,500 crore coal gasification project further strengthens this national initiative aimed at cutting import dependence on LNG, urea, and methanol while accelerating industrial growth.
