Surface coal and lignite gasification scheme to boost India`s energy security, cut import dependence
The Scheme for Promotion of Surface Coal and Lignite Gasification Projects, launched with a financial outlay of Rs 37,500 crore, marks a major step towards achieving the national target of gasifying 100 million tonnes (MT) of coal by 2030, to strengthen India’s energy security and reduce dependence on imports of key commodities such as LNG, urea, ammonia, and methanol, the government said on Wednesday.
The Coal Ministry is gearing up to organise a roadshow on Thursday to promote coal gasification as a cleaner and value-added pathway for the efficient utilisation of India’s vast coal and lignite resources.
The initiative marks a significant step towards promoting coal gasification as a cleaner and value-added pathway for the efficient utilisation of India’s vast coal and lignite resources.
The roadshow is being organised as part of the Ministry’s continued efforts to accelerate the development of a robust coal gasification ecosystem in the country.
The event will bring together policymakers, state officials, industry leaders, investors, technology providers, financial institutions, and other key stakeholders to deliberate on emerging opportunities, partnerships, and the future roadmap for coal gasification in India.
With an expected investment mobilisation of approximately Rs 2.5–3 lakh crore, the Scheme is projected to generate around 50,000 direct and indirect employment opportunities across nearly 25 projects in coal-bearing regions of the country.
Further, utilisation of 75 MT of coal and lignite under the Scheme is expected to generate nearly Rs 6,300 crore annually in revenue, apart from additional downstream revenue through GST and other levies.
Building upon the National Coal Gasification Mission launched in 2021 and the Rs. 8,500 crore coal gasification schemes approved in January 2024, under which eight projects for which incentive of Rs. 6,233 crore have been earmarked are already under implementation, the new scheme significantly expands support for coal gasification initiatives in the country.
