Cabinet approves Scheme for Promotion of Surface Coal/Lignite Gasification Projects with a financial outlay of Rs.37,500 crore

📌 Summary:

• Union Cabinet approved a Scheme for Promotion of Surface Coal/Lignite Gasification Projects with financial outlay of ₹37,500 crore, targeting gasification of ~75 Million Tonnes of coal/lignite
• Scheme advances national target of gasifying 100 MT of coal by 2030; strengthens energy security and reduces import dependence on LNG (>50% imported), urea (~20%), ammonia (~100%), methanol (~80–90%)
• Coal linkage tenure extended up to 30 years under "Production of Syngas leading to Coal Gasification" sub-sector in Non-Regulated Sector (NRS) linkage auction framework
• Incentive: maximum 20% of cost of Plant and Machinery; selection through transparent competitive bidding; expected to drive ~25 projects
• Strategic outcomes: ~50,000 direct+indirect jobs; ₹6,300 crore annual revenue from gasification + downstream GST; technology indigenisation by reducing reliance on foreign EPC contractors
• India holds world's largest coal reserves (~401 billion tonnes) and lignite reserves (~47 billion tonnes); coal accounts for >55% of energy mix

🎯 UPSC Relevance: GS3 — Indian Economy (Energy/Infrastructure) and Atmanirbhar Bharat. Critical for energy transition, import substitution, and Make in India.

📝 Prelims Facts:

• Financial outlay: ₹37,500 crore; gasification target ~75 MT under scheme
• National target: 100 MT coal gasification by 2030
• Coal linkage tenure: 30 years under NRS auction framework
• Syngas: synthesis gas from coal/lignite — feedstock for fuels and chemicals
• India's coal reserves: ~401 billion tonnes; lignite: ~47 billion tonnes

🔑 Key Term: Syngas — Synthesis gas (mixture of H₂ and CO) produced by gasifying coal/lignite; used as feedstock for producing fertilizers, methanol, ammonia and synthetic fuels.