The government is set to roll out a ₹37,500 crore incentive scheme aimed at accelerating coal gasification projects across the country, with Cabinet approval expected soon. The initiative is designed to promote cleaner utilization of coal by converting it into syngas, which can be used to produce fuels, chemicals, and fertilizers.
The proposed scheme will provide financial support and policy incentives to attract investments from both public and private sector players. By encouraging adoption of advanced gasification technologies, the government aims to reduce dependence on imported natural gas and other feedstocks while enhancing domestic value addition.
Coal gasification is seen as a key component of India’s strategy to transition towards more sustainable energy practices, as it enables more efficient and less polluting use of the country’s abundant coal reserves. The push is also expected to support sectors such as steel, power, and petrochemicals by ensuring a steady supply of alternative fuels and raw materials.
Officials noted that the scheme aligns with broader goals of energy security, import substitution, and industrial growth. Once approved and implemented, it is likely to generate significant employment opportunities and drive long-term investments in the energy and manufacturing sectors.