India’s coal gasification programme is moving into the execution phase, with projects worth more than ₹65,000 crore currently under implementation across the country. According to the Press Information Bureau (PIB), the update was shared by Coal Secretary Vikram Dev Dutt, highlighting the government’s push to diversify coal utilisation and reduce dependence on imported fuels.
₹8,500 Crore Incentive Scheme Gains Momentum
The ₹8,500 crore incentive scheme, approved in January 2024, has generated strong industry participation.
Key Highlights
- Total Incentive Scheme: ₹8,500 crore
- Projects Under Implementation: 8
- Incentives Allocated: ₹6,233 crore
- Total Project Value: Over ₹65,000 crore
The details were presented during the 3rd stakeholder roadshow on the Scheme for Promotion of Surface Coal and Lignite Gasification Projects held in Mumbai.
Diverse Industrial Applications
The approved projects span several strategic industries, including:
- Coal-to-Synthetic Natural Gas (SNG)
- Ethanol production
- Hydrogen manufacturing
- Acetic acid production
- Ammonium nitrate
- Direct Reduced Iron (DRI)-based steel
- Sustainable Aviation Fuel (SAF)
These projects are expected to enhance value addition from domestic coal while supporting India’s energy security and industrial development.
Maharashtra Emerging as a Major Hub
Union Coal Minister G. Kishan Reddy highlighted Maharashtra’s growing importance in the coal gasification ecosystem.
Maharashtra Highlights
- 5 coal gasification projects currently under development.
- Strong coal availability through Western Coalfields Ltd (WCL).
- Supportive industrial infrastructure and state policies.
Maharashtra Chief Minister Devendra Fadnavis also noted that Mumbai has historical links to coal gasification dating back to 1862 and reaffirmed the state’s commitment to attracting investments in the sector.
Long-Term Investment Vision
In addition to the current incentive programme, the Centre is also advancing a ₹37,500 crore support scheme.
Government Targets
- Expected Investments: ₹2.5–3 lakh crore
- Estimated Projects: Around 25
- Coal Gasification Target: 100 million tonnes annually by 2030
The government is currently finalising the Request for Proposal (RFP) after consultations with industry stakeholders.
Why Coal Gasification Matters
Coal gasification converts coal into cleaner gaseous fuels and chemical feedstocks, enabling production of:
- Cleaner industrial fuels
- Fertilisers
- Chemicals
- Hydrogen
- Transport fuels
The technology is expected to improve domestic resource utilisation while reducing dependence on imported natural gas, crude oil, and petrochemical feedstocks.
Key Numbers at a Glance
| Particular | Details |
|---|---|
| Projects under implementation | 8 |
| Total project value | ₹65,000+ crore |
| Incentives approved | ₹6,233 crore |
| Total incentive scheme | ₹8,500 crore |
| Additional scheme proposed | ₹37,500 crore |
| Long-term investment potential | ₹2.5–3 lakh crore |
| Coal gasification target | 100 million tonnes by 2030 |
Conclusion
India’s coal gasification programme has entered a significant execution phase, with over ₹65,000 crore worth of projects already underway. Supported by government incentives and growing private sector participation, the initiative aims to promote cleaner coal utilisation, strengthen energy security, expand domestic manufacturing of critical chemicals and fuels, and attract investments of up to ₹3 lakh crore by 2030.
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