Coal Gasification Scheme Seen as Catalyst for Large-Scale Projects, Union Minister Kishan Reddy Indicates

India Unveils Rs 46,000 Crore Scheme to Promote Coal Gasification

The Union Cabinet's recent approval of a combined scheme for the promotion of Surface Coal/Lignite Gasification Projects marks a significant step in India's energy and industrial journey. The Rs 46,000 crore scheme aims to inject fresh momentum into large-scale gasification projects across the country.

Coal Minister G Kishan Reddy expressed confidence in India's emergence as a promising destination for coal gasification investments. With an abundance of coal, policy support, and commitment, coal gasification is poised to become a new driver of industrial growth and self-reliance, he said.

Despite its vast coal reserves, India continues to rely heavily on imports of methanol, ammonia, fertilizer feedstocks, and critical industrial chemicals, resulting in a substantial outflow of foreign exchange every year. Coal gasification offers a strategic pathway to convert domestic coal into value-added products, strengthen energy security, reduce import dependence, and enhance economic resilience.

Category	India's Status
Coal Reserves	5th largest in the world, nearly 400 billion tonnes
Coal Production	2nd largest producer in the world
Coal Consumption	2nd largest consumer in the world
Electricity Generation	70% dependent on coal

Coal Gasification Scheme Seen as Catalyst for Large-Scale Projects, Union Minister Kishan Reddy Indicates

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