New Delhi, June 19: A senior official has announced that India is currently working on coal gasification projects worth over ₹65,000 crore. This indicates that the government’s initiative to convert coal into chemicals, fuels, and industrial raw materials is no longer just a policy plan but is being rapidly implemented at the ground level.
During a recent event, Coal Secretary Vikram Dev Datt mentioned that the sector has received encouraging responses from the industry.
According to him, eight projects are already in the implementation phase under an ₹8,500 crore incentive scheme approved in January 2024.
These projects have received ₹6,233 crore in incentive support and are linked to areas such as synthetic natural gas (SNG), ethanol, hydrogen, acetic acid, ammonium nitrate, DRI-based steel, and sustainable aviation fuel.
The government is also finalizing the Request for Proposal (RFP) for a larger ₹37,500 crore incentive scheme. The draft document has already been made public for stakeholder suggestions.
Addressing the event, Union Coal Minister G. Kishan Reddy stated that Maharashtra is emerging as a significant hub for coal gasification. The state is already working on five projects.
He noted that Maharashtra benefits from coal availability through Western Coalfields Limited, a robust industrial infrastructure, and policy support. This is why the state has the potential to become a major center for coal gasification projects.
Meanwhile, Maharashtra Chief Minister Devendra Fadnavis emphasized the state’s commitment to creating an investment-friendly environment in this sector. He also mentioned that Mumbai has a historical connection with coal gasification technology.
The government expects to attract investments of ₹2.5 lakh crore to ₹3 lakh crore across approximately 25 projects under the coal gasification initiative.
By 2030, the government aims to achieve a target of 100 million tons of coal gasification.
This program is part of India’s broader strategy to reduce dependence on imports of fertilizers, chemicals, and fuels, strengthen domestic industrial capacity, and enhance energy security.
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