India's coal gasification push: Union Minister G Kishan Reddy announces major incentive packages
Mumbai, June 18
Union Minister of Mines G Kishan Reddy on Thursday emphasised the strategic importance of coal gasification in building a sustainable Indian economy, positioning it as a pivotal move to reduce import dependency and strengthen the nation's energy independence.
Addressing a gathering at a roadshow to promote Surface Coal/Lignite Gasification, in Mumbai, he highlighted India's resource potential, noting that the country possesses the fifth-largest coal reserves globally, with Chhattisgarh housing the Gevra mine, identified as the largest in the world.
He also noted that Maharashtra has developed into a model in the field of coal gasification, setting a precedent for other regions.
With coal currently meeting over 70 per cent of energy demand through thermal projects and accounting for approximately 55 per cent of the total energy mix, he underscored the necessity of coal gasification as a domestic substitute for LPG and diesel in the transportation sector.
"The challenge matrix of coal plays a very important role in our economy. Coal gasification is crucial for building a sustainable economy in India. It can serve as a substitute for LPG, and we can also produce diesel from coal. Through this, we can reduce imports in the transportation sector by substituting them with coal derived within India," he said.
To accelerate this transition, the central government has committed significant financial support, including an initial allocation of Rs 8,500 crore for the first phase. In the second phase of the roadshow, the government has announced an additional Rs 37,500 crore, with Rs 6,000 crore already utilised.
"This is the largest gasification initiative in the country, and investors are the backbone of these schemes," Reddy added.
The Minister attributed these advancements to a decade of reforms focused on the "ease of doing business," which have contributed to a 75 per cent increase in exports over the last 12 years.
"This is the result of the reforms of the last 12 years, which have been based on ease of doing business. There has been a 75 per cent increase in exports in the last 12 years. The energy sector has seen rapid reforms. With these fast-paced reforms, India has become a major force," he further said.
By integrating these reforms with the coal gasification initiative, the government aims to boost India as a manufacturing hub.
"Today, we are taking decisive steps forward. That is why, over the last 12 years, a head start has been given to coal gasification. To transfer this classification and make it a partnership, we will all work together with trust to take this gasification initiative forward.
For the first time, the Government of India, along with the Coal Ministry, has brought such a large incentive package for the country's future, for the country's development, to increase employment, and to make India a manufacturing hub. Together, we will make this initiative successful," he assured.
— ANI
Reader Comments
Sounds promising but I'm skeptical about the environmental impact. Coal gasification still produces CO2, and with climate change affecting Indian agriculture heavily, shouldn't we also accelerate solar and wind? Let's not put all eggs in one basket, especially a dirty one.
Rs 37,500 crore for second phase? That's a massive investment! If this reduces our oil import bill by even 10%, it'll be worth it. Imagine the savings in foreign exchange - we can use that for education and healthcare instead. Chhattisgarh and Maharashtra leading the way 💪
Good initiative but I worry about the workers in the coal mining regions. Gasification plants need skilled labor - will the government provide proper training for local communities? Also, what about the rehabilitation of areas already degraded by mining? Just throwing money won't solve everything.
Interesting how the government talks about 'ease of doing business' and '75% increase in exports' - but ground reality for small businesses is still tough. Hope these gasification projects create actual jobs and not just corporate profits. Let's see how much actually reaches the common man.
As someone working in the energy sector, I see this as a double-edged sword. Coal-to-liquid technology is proven but expensive. The real question is - can we produce synthetic diesel at a price competitive with imported crude? Otherwise taxpayer money gets wasted. The $6000 crore already used needs careful auditing.
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