Coal gasification push gains momentum as government targets energy security and industrial scale-up
₹8,500 crore incentive scheme, 100 MT target by 2030 underline policy thrust
New Delhi: Coal gasification is emerging as a central pillar in India’s strategy to strengthen energy security, reduce import dependence, and drive industrial growth, with the government stepping up policy support and investments in the sector, Union Minister for Coal and Mines G. Kishan Reddy said.
Addressing the Bharat Electricity Summit 2026 on Sunday, Kishan Reddy said India’s development trajectory requires a balanced energy approach that aligns economic growth with sustainability, positioning coal gasification as a transformative technology in this transition.
India holds nearly 400 billion tonnes of coal reserves – among the largest globally – with coal contributing around 55% of the country’s energy mix and nearly 74% of electricity generation. Annual coal demand, currently at about one billion tonnes, is expected to rise significantly by 2047, reinforcing the continued role of coal even as India pursues its net zero target by 2070.
Coal gasification converts coal into syngas, which can be used to produce cleaner fuels, chemicals, fertilizers, and hydrogen. This enables more efficient utilisation of domestic resources while reducing reliance on imports. India currently depends on imports for around 83% of crude oil, 50% of natural gas, and over 90% of methanol and fertilizers.
To accelerate adoption, the government has launched the National Coal Gasification Mission, targeting 100 million tonnes of coal gasification capacity by 2030. An incentive framework of ₹8,500 crore has been rolled out to support both public and private sector participation.
Large-scale projects with investments exceeding ₹64,000 crore are already in the pipeline, indicating growing industry interest in the sector.
The minister also highlighted emerging technologies such as underground coal gasification (UCG), which can unlock previously inaccessible reserves while potentially reducing environmental impact.
Emphasising the need for a collaborative ecosystem, Reddy called for stronger engagement between industry, academia, startups, and research institutions, noting that coal gasification cuts across sectors including power, oil and gas, and fertilizers.
He reiterated the government’s commitment to streamlined approvals, enabling policies, and investment incentives to drive early adoption.
With coordinated efforts and focus on indigenous technology development, India aims to position itself as a global leader in cleaner coal technologies while advancing energy security and self-reliance.
