India is currently executing coal gasification projects worth more than ₹65,000 crore, with the government targeting the gasification of 100 million tonnes of coal by 2030. The initiative is expected to attract investments of ₹2.5-3 lakh crore across nearly 25 projects and strengthen India’s energy security by reducing import dependence on fuels, chemicals and fertilisers.
Key Highlights
✅ Coal gasification projects worth ₹65,000 crore are under implementation in India.
✅ Eight projects have received ₹6,233 crore incentive support under the government’s scheme.
✅ India aims to gasify 100 million tonnes of coal by 2030.
✅ The initiative could attract ₹2.5-3 lakh crore investments across nearly 25 projects.
India’s ambitious coal gasification programme is gaining momentum, with projects worth over ₹65,000 crore currently under execution, according to the Ministry of Coal.
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Speaking at a recent industry event, Coal Secretary Vikram Dev Dutt said the government’s efforts to transform coal into value-added products such as chemicals, fuels and industrial feedstock have moved beyond policy formulation and into active implementation.
The official stated that the industry has shown a strong response to the government’s coal gasification push. As part of the initiative, eight projects are already under implementation under the ₹8,500-crore incentive scheme approved in January 2024.
These projects have received ₹6,233 crore in incentive support and cover a wide range of sectors including coal-to-synthetic natural gas (SNG), ethanol, hydrogen, acetic acid, ammonium nitrate, DRI-based steel production and sustainable aviation fuel (SAF).
The government is also moving ahead with a larger ₹37,500-crore incentive programme, with the draft Request for Proposal (RFP) already placed in the public domain for stakeholder consultations.
Addressing the event, Union Coal Minister G. Kishan Reddy highlighted Maharashtra’s growing importance in the sector, noting that five coal gasification projects are currently under development in the state.
According to the minister, Maharashtra enjoys significant advantages due to coal availability from Western Coalfields Limited (WCL), a robust industrial ecosystem and supportive state policies, making it a potential hub for future coal gasification investments.
Maharashtra Chief Minister Devendra Fadnavis reiterated the state’s commitment to creating an investment-friendly environment and pointed to Mumbai’s historical association with coal gasification technology.
The government expects the coal gasification mission to become a major industrial growth driver, with projected investments of ₹2.5 lakh crore to ₹3 lakh crore across around 25 projects nationwide.
The initiative is a key part of India’s broader strategy to reduce dependence on imported fertilisers, chemicals and fuels while strengthening domestic manufacturing capabilities and enhancing long-term energy security.
Conclusion
India’s coal gasification programme is emerging as a strategic pillar of the country’s energy transition and industrial growth agenda. With ₹65,000 crore worth of projects already under implementation and significant investment expected in the coming years, the initiative is set to boost domestic manufacturing, improve energy security and create new opportunities across multiple industrial sectors.
