Coal gasification projects worth more than ?65,000 crore are already under execution in India, Vikram Dev Dutt, Secretary, Ministry of Coal, said on Thursday, marking one of the first clear signals that the government’s push to convert coal into chemicals, fuels and industrial feedstock is moving from policy design to on-ground implementation.

There has been an encouraging response to the ?8,500 crore incentive scheme approved in January 2024, under which eight projects are already under implementation with incentive support of ?6,233 crore, covering diverse sectors such as coal-to-SNG, ethanol, hydrogen, acetic acid, ammonium nitrate, DRI-based steel and sustainable aviation fuel, Dutt said.

 The figure was cited during the third stakeholder roadshow on the Scheme for Promotion of Surface Coal and Lignite Gasification Projects, held in Mumbai, where the Ministry of Coal outlined the emerging project pipeline, financing structures and state-level participation in the sector.

The execution pipeline comes alongside the Centre’s larger ?37,500 crore incentive scheme, under which the government is currently finalising the request for proposal (RFP) after placing the draft document in the public domain for stakeholder consultation. The ?8,500 crore scheme is in addition to the larger programme.

Speaking at the event, Union Coal Minister G Kishan Reddy said Maharashtra has emerged as a key centre for coal gasification, with five projects already under development in the state.

He said the state benefits from strong coal availability through Western Coalfields Ltd, along with industrial infrastructure and policy support, positioning it as a potential gasification hub.

Chief Minister Devendra Fadnavis said Mumbai’s historical link to coal gasification dates back to 1862 and argued that the city is once again playing a central role in advancing the technology.

He said Maharashtra is committed to creating an investment-friendly ecosystem for the sector.

The government expects the scheme to catalyse total investments of around ?2.5-3 trillion across nearly 25 projects, with an aim to gasify 100 million tonnes of coal by 2030.

The initiative is positioned as part of India’s broader strategy to reduce import dependence in fertilisers, chemicals and fuels while strengthening domestic industrial capacity.

Source: Business Standard 

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