₹37,500 Crore Spark: India’s Bold Bet on Coal Gasification

The Union Cabinet is likely to soon consider approval of a ₹37,500-crore incentive scheme aimed at promoting coal gasification projects, as part of efforts to support cleaner energy production and reduce reliance on imports.

According to sources, the Ministry of Coal has prepared a Cabinet note detailing the proposed scheme and its financial framework. The initiative is expected to accelerate the development of surface coal and lignite gasification projects across India.

The scheme is designed to enhance self-reliance by reducing imports of key commodities such as LNG, urea, ammonium nitrate, ammonia, coking coal used in DRI processes, methanol, and DME. It also seeks to improve the utilisation of domestic coal and lignite resources for producing fuels and chemicals.

This move aligns with the government’s broader target of achieving 100 million tonnes of coal gasification capacity by 2030, positioning the sector as an important pillar in India’s evolving energy strategy.

News by Rahul Yelligetti.