Intro
Coal gasification projects worth Rs 65,000 crore advance nationwide, boosting energy security, industrial growth and import substitution efforts.
New Delhi
Coal gasification projects worth more than Rs 65,000 crore are currently under execution across India, reflecting significant progress in the government’s efforts to convert coal into value-added products such as chemicals, fuels and industrial feedstock.
Speaking at a recent industry event, Coal Secretary Vikram Dev Dutt said the sector has received an encouraging response from industry stakeholders, with several large-scale projects already moving into the implementation phase.
According to the official, eight projects have commenced execution under the Rs 8,500-crore incentive scheme approved by the government in January 2024. These projects have been allocated incentive support amounting to Rs 6,233 crore and cover a diverse range of sectors, including coal-to-synthetic natural gas (SNG), ethanol production, hydrogen generation, acetic acid manufacturing, ammonium nitrate production, direct reduced iron (DRI)-based steelmaking and sustainable aviation fuel.
The government is also advancing plans under a larger Rs 37,500-crore incentive programme. Authorities are currently finalising the request for proposal (RFP) after placing the draft document in the public domain for stakeholder consultations and feedback.
Addressing the event, Union Coal Minister G. Kishan Reddy highlighted that Maharashtra has emerged as a major centre for coal gasification activities, with five projects already under development in the state. He noted that the availability of coal from Western Coalfields Limited, combined with strong industrial infrastructure and supportive policies, has positioned Maharashtra as a promising hub for future investments.
Meanwhile, Maharashtra Chief Minister Devendra Fadnavis reiterated the state government’s commitment to creating a favourable investment climate for the sector. He also pointed to Mumbai’s historical association with coal gasification technology as an advantage for future growth.
The government expects the initiative to attract investments of around Rs 2.5 lakh crore to Rs 3 lakh crore across nearly 25 projects. It has set a target of gasifying 100 million tonnes of coal by 2030 as part of a broader strategy to reduce import dependence on fertilisers, chemicals and fuels while enhancing domestic manufacturing capacity and strengthening India’s energy security.