Surface coal and lignite gasification scheme to boost India's energy security, cut import dependence
New Delhi, May 27
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 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.
— IANS
Reader Comments
Sounds promising on paper, but I'm a bit skeptical about the environmental impact. Coal gasification still uses coal, after all. Are we just swapping one pollution problem for another? Hope they have strict emission controls and proper water management. Otherwise, this is just greenwashing. Still, if done right, reducing LNG imports is a strategic necessity. 👀
Impressive ambition—100 million tonnes gasified by 2030. India has the world's fourth-largest coal reserves, so it makes sense to leverage them. The Rs 37,500 crore scheme and potential Rs 2.5-3 lakh crore investment mobilisation are huge numbers. If successful, this could transform not just energy security but also the economies of coal-bearing states like Jharkhand, Odisha, and Chhattisgarh.
This scheme is good, but I wish we were also aggressively pursuing renewable alternatives alongside. Coal gasification is still a fossil fuel, and the world is moving toward net-zero. However, in the short term, reducing our import dependency on LNG (which is volatile in price) and urea (for farmers) is crucial. As long as we phase down coal properly, this is a pragmatic step.
Remember the earlier Rs 8,500 crore scheme? Now we have Rs 37,500 crore. Good to see scaling up! But implementation is key—many government schemes look great on paper but falter on ground. Hope the Coal Ministry ensures timely clearances, technology transfer, and local community benefits. Also, please focus on water-scarce regions—gasification needs lots of water. 💧
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