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Coal Gasification Scheme Opens: Industry Interest Eyed
7 Sep
Summary
- Applications for Rs 37,500 crore coal gasification incentive scheme opened on September 8.
- The scheme aims to convert coal and lignite into higher-value products.
- The government expects to catalyze Rs 2.5-3 lakh crore investment and create 50,000 jobs.
Applications for the Ministry of Coal's Rs 37,500 crore incentive scheme for coal and lignite gasification opened on September 8, 2026. This initiative seeks to scale up domestic gasification and convert coal into higher-value products.
The scheme, approved by the Union Cabinet on May 13, 2026, aims to accelerate gasification, producing materials like syngas, methanol, and ammonia. This move is intended to decrease reliance on imported feedstocks and bolster India's energy security.
The government expects this scheme to attract significant investment, potentially between Rs 2.5 lakh crore and Rs 3 lakh crore, across approximately 25 projects. It is also projected to generate around 50,000 direct and indirect employment opportunities.
This program aligns with the broader national goal of achieving 100 million tonnes of coal gasification capacity by 2030. The scheme employs a rolling application mechanism to accommodate the complexity of the envisioned projects.
