Cabinet Approves ₹37,500 Crore Coal Gasification Scheme
NEW DELHI. The Union Cabinet today approved a significant financial package to promote the adoption of clean coal technologies across the country. This new coal gasification in India scheme features a total financial outlay of ₹37,500 crore. The primary objective is to gasify 75 million tonnes (MT) of coal by the year 2030. This initiative aims to reduce the national dependence on imported natural gas and chemical feedstocks. The government will provide financial assistance to both public and private sector projects through a competitive bidding process. This strategic move is expected to attract substantial private investment into the energy sector. Strengthening coal gasification in India remains a critical component of the national "Atmanirbhar Bharat" mission.
Financial Incentives and Project Categories
The scheme categorises projects into three distinct segments to ensure broad participation from various industrial players. Incentives under the coal gasification in India programme will support the production of synthetic natural gas and chemical products. A dedicated portion of the ₹37,500 crore outlay is reserved for indigenous technology development and demonstration projects. Successful bidders will receive capital subsidies based on their project milestones and production capacities. The government expects these incentives to offset the high initial costs associated with gasification infrastructure. This financial support is vital for making coal gasification in India a commercially viable alternative to traditional energy sources.
Strategic Impact on Energy Security
Implementing this scheme will significantly enhance the value chain of the domestic mining industry. The conversion of coal into syngas provides a cleaner way to utilise the country’s vast mineral reserves. This transition supports the national goal of achieving a gas-based economy while maintaining energy sovereignty. The coal gasification in India initiative will also help meet the rising demand for fertilisers and methanol. By producing these locally, the government aims to stabilise prices and reduce the trade deficit. Furthermore, the scheme encourages the adoption of carbon capture and storage technologies. In summary, the ₹37,500 crore outlay marks a transformative step toward a more sustainable and self-reliant energy future.
Cabinet Coal Gasification Scheme Highlights (2026) Parameter Details / Specifications Total Financial Outlay ₹37,500 Crore. Primary Metric Coal gasification in India. Gasification Target 75 Million Tonnes (MT) by 2030. Target Products Syngas, SNG, Methanol, and Fertilisers. Beneficiaries Public Sector and Private Sector Enterprises. Strategic Goal Reduced Import Dependence & Clean Coal Usage.