India Prepares Policy to Boost Urea Production from Coal Gasification

India is in the final stages of developing a policy to enable urea production through coal gasification within the next month. This strategic move aims to harness domestic coal resources and reduce the country's reliance on imported natural gas.

At a promotional event for coal gasification, officials emphasized the benefits, citing enhanced self-sufficiency and reduced foreign exchange outflows. Coal Secretary Vikram Dev Dutt noted that the Ministry of Chemicals and Fertilisers is actively refining the new urea policy, with significant input from the Ministry of Coal.

This policy shift will allow coal-based urea projects to compete with gas-based plants, possibly changing India's feedstock landscape. A Maharashtra firm, New Era Cleantech Solution, is already planning a major coal gasification project to capitalize on this policy.

(With inputs from agencies.)