Energy security and industrial growth will be enhanced by the implementation of ₹65,000 crore worth of coal gasification projects in India.
Current coal gasification projects in India are valued at about ₹65,000 crore, and the government aims to gasify 100 million tonnes of coal by 2030. By lowering reliance on imported fuels, chemicals, and fertilisers, the effort aims to increase India’s energy security and bring in investments ranging from ₹2.5-3 lakh crore spread across around 25 projects.
The government’s initiatives to convert coal into chemicals, fuels, and industrial feedstock have progressed beyond the stage of policymaking and into the realm of active execution, according to Coal Secretary Vikram Dev Dutt, who recently spoke at an industry gathering.
According to the official, the industry has responded strongly to the government’s initiative to gasify coal. The ₹8,500-crore incentive plan, which was authorised in January 2024, is already funding eight projects as part of the effort.
A variety of industries, including those involved in the conversion of coal to synthetic natural gas (SNG), ethanol, hydrogen, acetic acid, ammonium nitrate, DRI-based steel manufacture, and sustainable aviation fuel (SAF), have been rewarded with 6,233 crore in incentive support for these initiatives.
The draft Request for Proposal (RFP) has already been made public for stakeholder input, and the government is also proceeding with a bigger incentive package of ₹37,500 crore.
In his speech, Union Coal Minister G. Kishan Reddy praised Maharashtra’s rising profile in the industry, mentioning five gasification projects in the state that are under underway.
If the minister is to be believed, Maharashtra is well-positioned to become a coal gasification investment hotspot because to its abundant coal supply from Western Coalfields Limited (WCL), strong industrial ecosystem, and encouraging state policies.
While highlighting Mumbai’s ties to coal gasification technology, Maharashtra Chief Minister Devendra Fadnavis reaffirmed the state’s determination to foster an investment-friendly climate.
With planned investments ranging from ₹2.5 lakh crore to ₹3 lakh crore distributed among approximately 25 projects across the country, the government anticipates that the coal gasification mission would emerge as a significant engine for industrial growth.
As part of its larger aim to improve energy security in the long run, boost domestic industrial capacity, and decrease reliance on imported fertilisers, chemicals, and fuels, India has launched this program.
IMAGE: Mint
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