India is rapidly scaling up coal gasification to replace imported natural gas, oil derivatives, and industrial chemicals. By converting domestic coal into synthetic gas (syngas), the nation aims to secure its energy supply, cut massive forex outflows, and protect against global price volatility. The Indian government has introduced several targeted policies and financial measures.

India is rapidly scaling up coal gasification to replace imported natural gas, oil derivatives, and industrial chemicals. By converting domestic coal into synthetic gas (syngas), the nation aims to secure its energy supply, cut massive forex outflows, and protect against global price volatility. 
The Indian government has introduced several targeted policies and financial measures.
Massive Financial Outlays: -
The Union Cabinet approved a ₹37,500 crore financial support package for surface coal and lignite gasification projects. This builds on a previously launched ₹8,500 crore incentive scheme.
Capacity Targets: -
The overarching goal is to gasify 100 million tonnes of coal by 2030.
Import Substitution:-
 Instead of relying on imports for liquefied natural gas (LNG), ammonia, methanol, and petrochemicals, these plants will use India’s vast domestic coal reserves (estimated to last over 200 years) as raw material. 
Coal Gasification-Based Urea: -
To shield the agricultural sector from fluctuations in global gas prices, a specialized policy for manufacturing urea directly from coal gasification is being finalized. 
These initiatives aim to attract an estimated ₹2.5 lakh crore in downstream investments, transforming coal from a traditional fuel into a strategic industrial feedstock. 
    India's ₹37,500 crore coal gasification scheme aims to cut import dependence, boost industrial growth and strengthen energy security by turning domestic coal.
MJF Lion ER YK Sharma 

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