India Unveils ₹50,000 Crore Coal Gasification Scheme to Boost Energy Security and Cut Imports

New Delhi: In a landmark move aimed at reshaping India’s energy landscape, the government has launched a ₹50,000 crore incentive scheme to promote coal gasification — a process that converts coal into synthesis gas (syngas) for use in power generation, chemical production, and hydrogen development.

The initiative, led by the Ministry of Coal, targets the gasification of 100 million tonnes of coal by 2030, marking a decisive policy shift toward energy diversification and import reduction. By using domestic coal more efficiently, the government seeks to strengthen India’s industrial base while reducing dependency on imported natural gas and crude oil derivatives.

Experts say that when paired with carbon capture technologies, coal gasification offers a cleaner and more sustainable alternative to direct coal combustion. The scheme is expected to create significant industrial synergies across the power, fertilizer, and methanol sectors, stimulating private investment, infrastructure development, and employment opportunities.

A key highlight of the policy is the strategic collaboration between Coal India Limited (CIL) and GAIL (India) Limited, which brings together the coal production capacity of CIL and the gas distribution expertise of GAIL for an integrated rollout.

Government officials emphasized that effective implementation will determine the success of this initiative in ensuring long-term energy resilience and industrial self-reliance. The move aligns with India’s broader strategy of managing a gradual transition toward lower-emission energy systems without compromising growth or energy security.