Government Unleashes ₹46,000 Crore Investment in Coal Gasification to Drive Atmanirbhar Bharat

Government Unleashes ₹46,000 Crore Investment in Coal Gasification to Drive Atmanirbhar Bharat​

Ministry of Coal Accelerates Value Addition with Major Gasification Roadshow​

The Ministry of Coal successfully concluded a major Roadshow on Coal and Lignite Gasification Projects in Hyderabad, signaling a massive push towards the transformation of India's resource base. The event gathered industry leaders, investors, technology providers, and representatives from various government levels to discuss creating a robust coal gasification ecosystem.

Union Minister of Coal and Mines, Shri G. Kishan Reddy, presided over the gathering, emphasizing that coal gasification represents a pivotal opportunity for India’s industrial future. He noted that despite possessing vast reserves (nearly 400 billion tonnes), transforming these resources is critical to securing national energy interests.

Strategic Shift: Converting Reserves into Industrial Resilience​

Shri Reddy highlighted the strategic importance of this move, noting that while India is one of the world's largest coal producers and consumers (70% of electricity generation dependent on coal), a significant economic vulnerability persists. The nation remains heavily dependent on imports for crucial industrial chemicals, fertilizers, and methanol, leading to substantial foreign exchange outflow.

Coal gasification offers a definitive pathway to resolve this dependence. By converting domestic coal into high-value products, the initiative strengthens energy security and enhances India's overall economic resilience, transforming the resource from a fuel source into an industrial asset.

The ₹46,000 Crore Scheme Catalyzes Industrial Momentum​

The Union Cabinet approval of the combined Scheme for Promotion of Surface Coal/Lignite Gasification Projects has provided fresh momentum to large-scale projects across the country. This transformative investment is designed to anchor India in the coal gasification era.

Shri Satish Chandra Dubey, Minister of State, underscored the significance of the ₹37,500 crore scheme for promoting surface gasification projects. He stated that this commitment supports the vision of a self-reliant nation (Atmanirbhar Bharat), enabling India to produce essential industrial inputs domestically. Experts believe this shift will attract significant investment and generate large-scale employment opportunities.

Open Call: Industry Invited to Shape Gasification Framework​

Addressing stakeholders, Shri Vikram Dev Dutt, Secretary, Ministry of Coal, emphasized that the Scheme provides a compelling ecosystem through Central support, assured coal linkage, and supportive State incentives. He reinforced the government’s commitment to transparency, informing attendees that the Draft Request for Proposal (RFP) has been placed in the public domain.

The Roadshow featured a detailed presentation on the Draft RFP, covering eligibility criteria, incentive structure, and bidding methodology. Industry stakeholders were encouraged to contribute their valuable input toward strengthening the final framework of the scheme.

Future Outlook: Powering Growth and Self-Reliance​

The discussions reinforced that coal gasification is set to become a new driver of industrial growth. The initiative aims not only at import substitution but also at establishing advanced domestic manufacturing capabilities.

Stakeholders engaged in an interactive session, seeking clarity on financing, technology partnerships, regulatory approvals, and downstream market opportunities. BHEL and CIMFR showcased indigenous technologies, solidifying the commitment towards technological self-reliance as India moves toward its industrial goals.