Coal gasification projects valued at more than Rs 65,000 crore are currently being implemented in India, indicating a shift from policy planning to practical execution, as stated by a senior official. Coal Secretary Vikram Dev Dutt, speaking at a recent event, highlighted the positive industry response to the sector.
Eight projects are already in progress under a Rs 8,500-crore incentive scheme approved in January 2024, receiving incentive support of Rs 6,233 crore. These projects encompass various sectors such as coal-to-synthetic natural gas (SNG), ethanol, hydrogen, acetic acid, ammonium nitrate, DRI-based steel, and sustainable aviation fuel.
Additionally, the government is in the process of finalizing the request for proposal (RFP) for a larger Rs 37,500-crore incentive program, following public consultations after releasing the draft document. Union Coal Minister G. Kishan Reddy highlighted Maharashtra’s emergence as a significant hub for coal gasification, with five projects already in development in the state.
Maharashtra, benefiting from coal resources through Western Coalfields Ltd, supported by robust industrial infrastructure and policies, is poised to become a key location for coal gasification projects. Maharashtra Chief Minister Devendra Fadnavis affirmed the state’s commitment to fostering an investment-friendly environment for the sector, emphasizing Mumbai’s historical ties to coal gasification technology.
The government anticipates that the coal gasification initiative will attract investments of approximately Rs 2.5-3 lakh crore across nearly 25 projects and aims to gasify 100 million tonnes of coal by 2030. This initiative aligns with India’s broader strategy to reduce reliance on imports for fertilizers, chemicals, and fuels, while enhancing domestic industrial capabilities and energy security.
