New Delhi, May 27: The Centre on Wednesday said the Scheme for Promotion of Surface Coal and Lignite Gasification Projects, backed by a financial outlay of Rs 37,500 crore, is a major step towards achieving the national target of gasifying 100 million tonnes (MT) of coal by 2030.
The initiative aims to strengthen India’s energy security while reducing dependence on imports of key commodities such as LNG, urea, ammonia and methanol.
The Ministry of Coal will organise a roadshow on Thursday to promote coal gasification as a cleaner and value-added route for efficient utilisation of India’s coal and lignite resources.
The event is part of the government’s broader strategy to accelerate the development of a domestic coal gasification ecosystem and will bring together policymakers, industry leaders, investors, technology providers and financial institutions.
According to the government, the scheme is expected to mobilise investments worth nearly Rs 2.5-3 lakh crore and support around 25 projects across coal-bearing regions.
The programme is projected to create nearly 50,000 direct and indirect jobs while boosting industrial activity linked to coal conversion technologies.
Officials said utilisation of 75 MT of coal and lignite under the scheme could generate around Rs 6,300 crore annually in revenue, apart from additional collections through GST and related levies.
The initiative builds on the National Coal Gasification Mission launched in 2021 and earlier coal gasification schemes worth Rs 8,500 crore approved in January 2024.
Eight projects under the previous incentive framework, involving earmarked support of Rs 6,233 crore, are already under implementation, the ministry said.
The government views coal gasification as a strategic tool to improve energy self-reliance, diversify fuel sources and develop cleaner industrial feedstock alternatives.
