Coal gasification key to reducing Rs 3 lakh crore import bill, achieving energy security: G Kishan Reddy
Mumbai, June 18
Union Coal and Mines Minister G Kishan Reddy said coal gasification will play a central role in India's energy security strategy and help reduce the country's dependence on imports of key industrial inputs, as the Centre pushes ahead with a Rs 46,000-crore incentive programme to promote the sector.
Addressing a coal gasification roadshow in Mumbai on Thursday, Reddy said India currently spends nearly Rs 3 lakh crore annually on importing products such as natural gas, ammonia, methanol and urea, and coal gasification can help substitute a part of these imports with domestically produced alternatives.
"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 all vital inputs," Reddy said.
Calling coal gasification "centrally to India's energy security, industrial growth and Atma Nirbharta," the minister said the National Coal Gasification Mission aims to convert 100 million tonnes of coal into syngas by 2030.
He said the government has rolled out a two-phase incentive programme to accelerate investments in the sector.
"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 said.
The minister also invited industry participation, saying 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, who also addressed 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 said.
He said 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 organised as part of the Centre's outreach to industry ahead of the launch of the next phase of its coal gasification incentive scheme, with the Ministry of Coal urging stakeholders to provide feedback on the draft RFP and participate in upcoming bidding rounds.
— ANI
Reader Comments
Interesting, but I wish they focused more on renewable energy too. Coal gasification is better than burning coal directly, but it still has environmental concerns. The mention of carbon capture tech by CM Fadnavis is good, but we need to ensure this doesn't become an excuse to delay shifting to solar and wind. Balance is key! 😊
As someone from Vidarbha, this is big news! We have the coal, we have the land, and now the government is backing it with policy and incentives. If downstream industries come up here, it could transform the region's economy. The de-risking Fadnavis mentioned is also reassuring—Coal India as a partner makes sense. Let's hope the RFP process is transparent.
Finally, a practical plan! We import so much urea and methanol—why should we rely on others when we have coal reserves? The 100 million tonne target by 2030 is ambitious, but with this Rs 46,000 crore push, it seems doable. I just hope the environmental impact assessments are thorough before projects start in ecologically sensitive areas.
Good move by the government, but I'm cautious about coal gasification's water usage. We saw how coal plants stressed water resources in some areas. The minister should also clarify how this aligns with our net-zero targets. Still, reducing imports is critical—our forex reserves will thank us! 💪
Remember, China has been doing coal-to-gas for years, and it helped them
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.