India Earmarks Rs 37,500 Crore for Coal Gasification as Iran Crisis Heightens Energy Pressure
The plan targets 75 million tonnes of coal gasification and is meant to cut imports of LNG, urea and methanol, officials said.
- India's Cabinet Committee on Economic Affairs approved a Rs 37,500 crore coal gasification incentive scheme on Wednesday, chaired by Prime Minister Narendra Modi, targeting 75 million tonnes of coal gasification.
- Broadcasting Minister Ashwini Vaishnaw cited volatile geopolitical conditions in West Asia as a driver, noting India's Rs 2.77 lakh crore import bill for substitutable products in FY25 exposed the nation's vulnerability.
- Under the scheme, projects receive financial incentives capped at 20% of plant and machinery costs, disbursed in four equal instalments linked to project milestones through transparent competitive bidding.
- The scheme projects 50,000 direct and indirect jobs across 25 projects while extending coal linkage tenure up to 30 years under the "Production of Syngas leading to Coal Gasification" framework.
- Coal and lignite utilisation is expected to generate Rs 6,300 crore annually, supporting domestic production of methanol and fertilizers while reducing reliance on 100% imported ammonia.
23 Articles
23 Articles
Coal Gasification: How India aims to be self-reliant in energy sector
On 13th May (Wednesday), a ₹37,500 crore coal gasification project was approved by the Modi government with the goal of turning India’s enormous coal and lignite deposits into synthesis gas for use as fuel and in the production of chemicals, fertilisers and other goods. Prime Minister Narendra Modi stated that the initiative “will further energy security, boost investment and create job opportunities for the youth. It will add strength to our ef…
India approves $3.9 billion plan to boost coal gasification and cut fuel imports
New Delhi: India’s cabinet has approved a 375 billion rupee ($3.92 billion) scheme to promote coal gasification projects aimed at reducing reliance on imported fuels and expanding cleaner industrial use of domestic coal, Information Minister Ashwini Vaishnaw said.The initiative is designed to convert coal into synthetic gas, which can be used for power generation, fertilisers, petrochemicals, and other industrial applications. The move is expect…
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