Coal gasification can substitute imports of up to ₹3 lakh crore: Union Coal Minister G. Kishan Reddy

📌 Summary:

• At a promotional roadshow on Surface Coal/Lignite Gasification Projects in New Delhi on Thursday (28 May 2026), Union Coal Minister G. Kishan Reddy said coal gasification can help substitute imports worth up to ₹3 lakh crore annually

• Coal gasification — a process that converts solid coal/lignite into synthesis gas (syngas: CO + H₂) — can replace imported natural gas, methanol, ammonia, urea, dimethyl ether (DME) and other petrochemical feedstocks

• Strategic rationale: India imports ~85% of its crude oil and ~50% of its natural gas; coal gasification leverages India's abundant domestic coal reserves (5th largest in the world at ~344 billion tonnes) to advance Atmanirbhar Bharat in energy and chemicals

• Policy backing: Cabinet approved (January 2024) a ₹8,500 crore incentive scheme for coal and lignite gasification, targeting 100 million tonnes (MT) of coal-to-syngas capacity by 2030 — three categories of incentives for PSUs, private players, and demonstration plants

• Environmental angle: surface coal gasification is positioned as a "cleaner" alternative to direct combustion (with potential for CO₂ capture, utilisation and storage – CCUS); however, it is still a fossil pathway and lifecycle emissions remain contested

🎯 UPSC Relevance: GS3 — Indian Economy — Liberalisation, Industrial Policy & Growth, Energy; Infrastructure; Atmanirbhar Bharat; environment and pollution; Science & Tech applications

📝 Prelims Facts:

• Coal Gasification — chemical conversion of coal into syngas (CO + H₂) under controlled oxygen and steam; precursor for methanol, ammonia, hydrogen, urea, DME, SNG (synthetic natural gas)

• India's proven coal reserves: ~ 344 billion tonnes (5th largest globally); top three states for coal — Jharkhand, Odisha, Chhattisgarh

• Cabinet scheme (January 2024): ₹8,500 crore incentive for coal/lignite gasification; target 100 MT by 2030

• Coal Ministry's PSU vehicle for gasification: Coal India Ltd. (CIL); Singareni Collieries Co. Ltd. (SCCL); NLC India (lignite)

• Related missions: National Green Hydrogen Mission (₹19,744 crore, 2023), National Mission on Clean Coal Technologies (under MoC)

🔑 Key Term: Coal Gasification — a thermo-chemical process that converts solid coal into a gaseous mixture (syngas, primarily H₂ + CO) by reacting it with a controlled amount of oxygen and steam at high temperature, enabling downstream production of chemicals, fertilisers, hydrogen and synthetic fuels with potentially lower emissions than direct combustion if paired with CCUS.