India Adani Group Coal Gasification Project Near Nagpur
The Adani Group has announced plans to begin work in 2026 on a ₹70,000 crore integrated coal gasification and downstream derivatives complex near Nagpur, aiming to unlock strategic industrial capacity, generate tens of thousands of jobs and strengthen India’s chemical and energy supply chains. The project, at Linga in Kalmeshwar, is poised to place the region at the intersection of future industrialisation and evolving low-carbon energy technology pathways.
Coal gasification transforms solid coal into syngas — a mixture of hydrogen, carbon monoxide and other energy carriers — which can then be processed into chemicals such as ammonia and hydrogen that are vital for fertilisers, steel production and potential clean fuels. While traditionally associated with fossil fuel industries, proponents argue that advanced gasification can support reduced emissions intensity relative to direct coal use and improve resource efficiency when paired with carbon capture and utilisation technologies.The sheer scale of the investment — similar to major infrastructure projects — reflects not just corporate ambition but broader shifts in how energy-intensive sectors are positioning themselves amid global climate and industrial transitions. Government officials and private sector leaders attending the Advantage Vidarbha 2026 summit described the initiative as integral to expanding domestic production of advanced chemicals and reducing reliance on imports for critical industrial inputs.
For urban and regional planners, the implications are multifaceted. On one hand, boosting production of hydrogen and ammonia locally can support downstream manufacturing, decarbonised transport fuels, and infrastructure projects that require industrial gases and materials. On the other, large-scale gasification facilities historically face environmental scrutiny over emissions and water use, necessitating robust regulatory oversight and community engagement as the project unfolds.The project’s planned job creation — estimated at around 30,000 direct roles — also underscores its potential economic impact on the Vidarbha region, which has been emerging as a hub for energy, logistics and industrial activity. With infrastructure such as inland container depots, energy facilities and aviation support services growing in parallel, the gasification complex could catalyse broader economic diversification in and around Nagpur.
Yet the venture sits at a complex juncture. India’s commitment to net-zero greenhouse gas emissions by 2070 and its rapid expansion of renewable energy sources contrast with continued investments in coal-linked technologies. Analysts caution that without clear plans for emissions mitigation — including potential integration of carbon capture or transition to green hydrogen pathways — coal gasification could extend reliance on carbon-intensive feedstocks at a time when low-carbon alternatives are gaining policy traction.Local land acquisition for the site is being managed by the Maharashtra Industrial Development Corporation (MIDC), which is securing roughly 400 acres for the project. Detailed planning on resource sourcing, emissions control and water allocation are expected to follow in coming months as the initiative moves toward construction.
As the project advances, stakeholders across governance, industry and civil society will be watching whether this ambitious industrial bet can balance economic growth with environmental stewardship — a critical test for sustainable urban and regional development in an era of converging energy transitions.
