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EconomyThe Hindu9 June 2026

Centre bets big on coal gasification; targets Rs 4 lakh cr investment

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๐Ÿ“Œ Summary:

  • The Union Ministry of Coal and Mines outlined an ambitious coal gasification push targeting Rs 4 lakh crore of investment
  • Aims to save around Rs 3 lakh crore in foreign exchange and generate employment for nearly 1 lakh people
  • Centre is prioritising both surface and underground coal gasification to reduce import dependence
  • Process unlocks high-value by-products such as ammonia, methanol, hydrogen, fertilisers, chemicals and petrochemicals (announced by Union Minister G. Kishan Reddy)

๐ŸŽฏ UPSC Relevance: GS3 (economy โ€“ infrastructure, energy security, import substitution; environment โ€“ cleaner use of coal) โ€“ diversifying coal use beyond power towards chemicals and reducing the fertiliser/petrochemical import bill.

๐Ÿ“ Prelims Facts:

  • Coal gasification converts coal into syngas (a mix of CO and H2), which can yield methanol, ammonia, hydrogen and synthetic fuels
  • Underground Coal Gasification (UCG) converts coal in-situ without mining it
  • Nodal ministry: Ministry of Coal and Mines

๐Ÿ”‘ Key Term: Syngas (synthesis gas) โ€“ a fuel-gas mixture chiefly of hydrogen and carbon monoxide produced by gasifying carbon-rich feedstock such as coal.

coal gasificationsyngasenergy securityimport substitution

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