India Targets 100 Million Tonnes of Coal Gasification by 2030

Coal and Mines Minister G Kishan Reddy noted that the government has allocated ₹46,000 crore for the first experimental phase of coal gasification, as per a CNBC TV18 news report. 

The next stage will focus on taking projects towards commercial-scale production. Speaking at the Agrasar Bharat Manch in New Delhi, Reddy said coal meets 55% of India's primary energy needs and accounts for 74% of electricity generation.  

The government is working to convert coal into syngas, ammonia, urea, and methanol. MoUs have been completed following project auctions. 

Government Sets 2030 Target 

India aims to gasify 100 million tonnes of coal by 2030. The government plans to complete 25 plants within five years, with four under-construction projects expected to be completed within a year. 

The Cabinet has approved a ₹37,500 crore coal gasification scheme. An ₹8,500 crore incentive scheme was already in place. The Cabinet announcement also cited expected annual mining revenue of ₹6,300 crore. 

Focus on Domestic Technology 

In June 2026, the Coal Ministry called for coal gasification technology to be developed for Indian conditions. The focus is on producing urea and ammonia from gasified coal at lower costs and reducing dependence on imports. 

Coal Ministry Additional Secretary Rupinder Brar said reliance on overseas technology could leave projects waiting for foreign technicians. 

Private Sector Participation 

Private investment is also being explored. On 27 October 2025, CNBC-TV18 reported that three large conglomerates had expressed interest in expanding their coal gasification operations.  

Partnerships with Coal India for underground coal gasification were also under consideration. 

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Conclusion 

India imports over 85% of its crude oil requirements. The government has not estimated how much coal gasification could replace LNG and LPG imports.  

The programme's stated targets include expanding domestic production and reducing reliance on imported industrial inputs. 

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