India is aggressively promoting coal gasification to reduce its reliance on imported petroleum products, fertilizers, natural gas, and chemicals. The government aims to gasify 100 million tonnes (MT) of coal by 2030, backed by a massive ₹37,500 crore incentive scheme.

India is aggressively promoting coal gasification to reduce its reliance on imported petroleum products, fertilizers, natural gas, and chemicals. The government aims to gasify 100 million tonnes (MT) of coal by 2030, backed by a massive ₹37,500 crore incentive scheme. 
Key Government Initiatives & Incentives
Financial Outlays: -
The Union Cabinet approved a ₹37,500 crore scheme to support surface coal/lignite gasification projects. This covers a significant portion of capital costs for plant and machinery. An earlier ₹8,500 crore incentive framework has already funded multiple public and private projects. 
Long-term Policy Certainty: -
The government extended coal linkage tenure up to 30 years for the gasification sub-sector. 
Auction Rebates: -
Commercial coal block auctions offer a 50% rebate in the revenue share for coal used in gasification, and a 20% concession on the revenue share. 
PSU Joint Ventures: -
Entities like Coal India Limited (CIL) are forming joint ventures with BHEL, GAIL, and SAIL for large-scale production facilities. 
Major Projects Underway
Coal-to-Ammonium Nitrate (Lakhanpur, Odisha): -
A ₹25,000 crore project spearheaded by Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields Limited (MCL). It will be India’s first large-scale project to utilize indigenously developed gasification technology from BHEL. 
Synthetic Natural Gas (Sonepur Bazari, West Bengal): -
A joint venture between CIL and GAIL aiming to convert coal into synthetic natural gas. 
Underground Coal Gasification (UCG):- The government is pushing UCG to tap into deep-seated reserves where conventional mining is not feasible, with pilot projects established in places like the Kasta block in Jharkhand. 
Strategic Goals
By converting vast domestic coal reserves into syngas, India seeks to localize the production of urea, ammonia, methanol, and substitute natural gas (SNG). This initiative supports the goal of an Aatmanirbhar Bharat (self-reliant India), potentially saving billions in foreign exchange and shielding the country from global supply chain disruptions. 
India's Push for Coal Gasification Boosts Energy Security .
MJF Lion ER YK Sharma 

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