Union Coal and Mines Minister G Kishan Reddy stated that coal gasification will be central to India's energy security strategy and help reduce dependence on imports of key industrial inputs. The government is advancing a Rs 46,000 crore incentive program to promote the sector.
Reducing Import Dependence
Addressing a coal gasification roadshow in Mumbai on Thursday, Reddy noted that India currently spends nearly Rs 3 lakh crore annually on importing natural gas, ammonia, methanol, and urea. Coal gasification can substitute these imports with domestically produced alternatives, he said.
"India spends nearly Rs 3 lakh crore for importing all these key industrial inputs such as natural gas, ammonia, methanol and urea. Coal gasification can help reduce the dependence by converting our domestic coal into these vital inputs," Reddy emphasized.
National Coal Gasification Mission
Calling coal gasification central to India's energy security, industrial growth, and Atma Nirbharta, the minister announced the National Coal Gasification Mission aims to convert 100 million tonnes of coal into syngas by 2030. The government has rolled out a two-phase incentive program to accelerate investments.
"First phase, we are now the 8500 crores and the second phase... 37500 crores. Total amount is 46000 crores incentive scheme will further accelerate investments and the largest scale in coal gasification projects across the country," Reddy explained.
Industry Participation
The minister invited industry participation, stating that stakeholder feedback is being sought on the draft request for proposal (RFP). "The success of this mission ultimately depends on the active participation of industry and investors. Industry and investors are the backbone of the scheme," he said.
Maharashtra Chief Minister Devendra Fadnavis, also addressing the event, said the state is positioning itself as a major destination for coal gasification investments and highlighted the role of carbon capture technologies in making coal-based industries more sustainable.
"I want to tell all the industry and investors that India has de-risked. There will be no another sector in India where such de-risking has happened. Coal India is becoming your partner," Fadnavis stated.
He added that Maharashtra has aligned its policies with the Centre's coal gasification push and is looking to leverage coal-bearing regions, particularly Vidarbha, to develop downstream industrial ecosystems.
"We have coal mines, we have land, and the central government, the Indian government and the Maharashtra government are together. This area, I believe, will make the Indian economy stronger and India self-reliant," Fadnavis said.
The roadshow was part of the Centre's outreach to industry ahead of the next phase of its coal gasification incentive scheme. The Ministry of Coal urged stakeholders to provide feedback on the draft RFP and participate in upcoming bidding rounds.
