Coal gasification a major business opportunity; India ready to enter 'coal gasification decade': G Kishan Reddy
Hyderabad, June 11
India is ready to enter its "coal gasification decade" and industry players must view coal gasification as a major business opportunity that can support the country's fertiliser, chemical, steel and energy sectors while reducing import dependence, said Union Coal and Mines Minister G Kishan Reddy on Thursday.
Addressing the Coal Gasification Roadshow in Hyderabad, Reddy said the government's coal gasification initiative has received an encouraging response from industry and called for greater participation from businesses.
"I urge all the industry partners to view coal gasification not just as a policy initiative, but as a major business opportunity, a technology upgrading opportunity, and a nation-building opportunity, and to participate in it with confidence," the minister said.
He said Hyderabad occupies a key place in India's coal gasification plans because of its strong industrial ecosystem.
"Hyderabad is the ground zero of India's coal gasification journey. Hyderabad is the country's Pharma Capital... Hyderabad has a big industrial cluster," he said.
Highlighting the government's efforts to promote the sector, Reddy said the coal gasification scheme is being implemented at speed following Cabinet approval.
"Within just one month of Cabinet approval, we have also placed a draft Request for Proposal (RFP) in the public domain so that all stakeholders can share their views and suggestions, ensuring transparent participation and an industry-friendly implementation process," he said.
The minister said coal gasification offers multiple industrial applications and can help India reduce its import bill by producing key products domestically.
"One of the biggest strengths of coal gasification is its versatility. It can produce fertiliser, chemicals, hydrogen, clean fuels and even support steel manufacturing," he said.
Referring to international experience, the minister noted that countries such as China, the United States and South Africa have already adopted coal gasification technologies at scale.
"The Asia-Pacific region today accounts for over 70 per cent of global coal gasification capacity. India is one of the most promising markets in the sector. We have the coal reserves, the technology ecosystem, the policy support and political will needed to build a world-class gasification industry in our nation," he said.
Projecting confidence in India's industrial growth prospects, Reddy said, "India has created an environment where industry can invest with confidence and grow at scale."
The minister added that India's broader economic and governance reforms have laid the foundation for large-scale industrial initiatives such as coal gasification.
"Over the last 12 years, India has moved from policy paralysis to policy certainty, from delays to delivery, and from potential to performance," he said.
Calling coal gasification an important part of India's long-term development strategy, Reddy said, "Coal gasification is therefore not just a coal sector initiative; it is part of the larger journey of Viksit Bharat, Atmanirbhar Bharat and India's rise as a global manufacturing and industrial powerhouse."
— ANI
Reader Comments
As someone from Hyderabad, I'm proud to see our city being called 'ground zero' for coal gasification! With our pharma and industrial base, this could really transform the region. But I hope environmental safeguards are strictly followed — we don't want to repeat the mistakes of other industrial corridors. Pollution is already a concern in many parts of Telangana.
Good initiative but I'm skeptical. Coal gasification is water-intensive and produces CO2. In a country already facing water stress in many states, we need to ensure we're using clean coal technology, not just creating new problems. Also, the minister's claim about 'policy certainty' — let's see if the next government continues this momentum. Political will can't be taken for granted.
As someone who works in the energy sector abroad, I've seen coal gasification work well in China and the US. India has the geological advantage — vast coal reserves in Jharkhand, Odisha, Chhattisgarh. The key will be technology transfer and making it economically viable without heavy subsidies. If done right, this could slash India's ₹12 lakh crore import bill on crude and chemicals.
From 'policy paralysis to policy certainty' — that line hit home. For decades, Indian industry was stuck in red tape. Now at least the intent is clear. But execution is everything. We need PPP models, quick land acquisition, and skilled manpower. The Coal Ministry should also look at using coal gasification for hydrogen production — that's the future. Overall, a positive direction. 👏
I'm all for reducing imports, but let's not forget our climate commitments
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