Gadchiroli: India’s Emerging Steel Heart

Gadchiroli is emerging as a key steel manufacturing hub, and Coal India Ltd (CIL) is exploring the region as a potential cluster for syngas production, positioning it as a cleaner alternative to conventional coal usage.

During a technical session at Advantage Vidarbha, CIL outlined plans to supply syngas to industries in the region, with separate tenders for syngas extraction and offtake expected to be issued later this month. Several upcoming steel units in Gadchiroli have expressed interest in using syngas as a fuel, and CIL has indicated its willingness to produce syngas from the coal it mines. Raigarh in Odisha is also under consideration as a potential syngas consumption cluster.

Peeyush Kumar, Managing Director of Bharat Coal Gasification and Chemical Ltd (BCGCL)—a joint venture between CIL and BHEL—said, “CIL has resources such as land and coal, while private players can bring in the technology required for syngas extraction. Production can be undertaken at the consumer end, enabling direct offtake.”

While BCGCL is currently developing a coal gasification project in Odisha, the tender for the proposed syngas initiative will be issued by CIL. Industry sources noted that due to long gestation periods, commercial syngas production in India may take at least four years to become operational.

News by Rahul Yelligetti.