Ministry of Coal
Union Minister of Coal and Mines Shri G Kishan Reddy Performs Bhumi Pujan for two Coal Gasification Projects in Maharashtra
Coal Minister Reviews Murpar Mine Closure Site; Holds Mine Closure Advisory Committee Meeting
Posted On:
14 MAR 2026 7:26PM by PIB Delhi
On the Second day of his two-day visit to Maharashtra, Union Minister of Coal and Mines Shri G Kishan Reddy along with Chief Minister of Maharashtra, Shri Devendra Fadnavis, performed the Bhoomi Pujan ceremony of two Coal Gasification projects in Chandrapur, Maharashtra today. Shri G Kishan Reddy also reviewed the mine closure activities at Murpar Mine Closure site. Shri Reddy also held a Mine Closure Advisory Committee meeting with stake holders at Chimur.

The two coal gasification projects for which the Bhoomi Pujan was conducted, are among seven projects that have been selected for grant of financial incentive under GOI scheme. One of the two projects – Integrated Steel Plant based on Gasification Technology, by Greta Energy is a 0.4 MTPA independent integrated steel plant (ISP) and a carbon capture and utilisation system of 1490 TPD capacity (CCUS), being developed at an area of around 130 acres. The integrated steel complex will include a coal gasification island producing coal-based syngas for Direct Reduced Iron (DRI) production.
The second project is an integrated coal gasification & clean fuels project by New Era Cleantech Solutions Pvt Ltd. The project will convert domestic coal into critical industrial chemicals and fuels used across sectors such as fertilisers, mining, textiles and packaging. Once operational, these projects are expected to process over 2.5 million metric tonnes of coal annually.
Speaking on the occasion, Union Minister shri G Kishan Reddy said that Coal Gasification is emerging as an important pillar of India’s Energy Independence, Industrial Development and the vision of Viksit Bharat. He said that 4 out of 7 sanctioned Coal Gasification projects are coming in Maharashtra. Minister said that coal gasification will help in reducing imports, saving forex and strengthening industrial supply chains.

Minister said that an investment of more than 10,000 crore rupees in being made in these two projects. Shri Reddy said these projects are expected to create more than 2,000 direct employment and five times more indirect employment. Minister expressed hope and confidence that these projects will start production well within the stipulated timelines and set a new benchmark for responsible mining and clean coal technologies.

Later in the day, Minister Shri G Kishan Reddy inspected the mine closure site of Western Coalfields Limited's Murpar Underground Mine. Coal production at this mine commenced in 2003, and the mine was closed in 2022 after the area was declared part of the Eco-Sensitive Zone of Tadoba-Andhari Tiger Reserve.

Speaking on the occasion, Shri Reddy, stated that mine closure is not the end of a project, but a new beginning towards sustainable development. He emphasized that the mine closure process should be implemented scientifically and systematically to ensure the restoration of environmental balance and the conservation of natural resources in the mined-out area. Minister further added that the interests of local communities should be prioritized in mine closure plans. He said that through various initiatives promoted by the Central Government, efforts are being made to transform closed mines into socially, economically, and environmentally useful assets.
Providing information about the Murpar Underground Mine, Shri Harish Duhan, Chairman-cum-Managing Director of WCL, said that approximately 9,95,926 tons of coal have been produced from this mine since its establishment. The final Mine Closure Plan for the mine was approved by the WCL Board on January 19, 2026. Approximately 426 employees working in the mine have been redeployed to other mines in the Umrer area.
All mining infrastructures in the Murpar mine have been removed as per rules, while the manager's office and canteen building have been preserved for social use on the recommendation of the district administration. All physical work related to mine closure and three years of environmental monitoring have also been completed. Afforestation work will be carried out on 5 hectares of land in the mine area with the cooperation of the Tropical Forest Research Institute, Jabalpur, during June to September 2026. Eight free health camps were also organized for the people of nearby villages, benefiting approximately 715 beneficiaries.
The Chandrapur District Administration constituted the Mine Closure Advisory Committee (MCAC) on June 12, 2025, through which a plan was prepared keeping in mind the sustainable development of the area, environmental protection, and the interests of local communities after mine closure. Along with this, the process of Social Impact Assessment has also been initiated to study the social impact of mine closure and to prepare a Community Development and Livelihood Plan.

After the visit to the mine closure site, Shri G. Kishan Reddy, held a meeting with the District Collector and the Mine Closure Advisory Committee at the Chimur Municipal Office. WCL's Mine Closure Nodal Officer, representatives of voluntary organizations, consultants, and local village representatives were present. The meeting discussed the overall and sustainable development of the area after mine closure. Shri Sanoj Kumar Jha, Additional Secretary, Ministry of Coal, Shri B. Sairam, Chairman, Coal India Limited, and other senior officers of the Ministry of Coal, CIL and WCL were also present on the occasion.
Under the guidance of the Ministry of Coal, CIL and its subsidiaries including WCL are making continuous efforts in the field of scientific mine closure. The Ministry of Coal remains committed to ensuring energy security of the nation, while leaving minimal impact on the environment.
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Shuhaib T
(Release ID: 2240230)
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