India's Strategic Push for Clean Energy via Coal Gasification

The Union Cabinet has approved a Rs 37,500-crore incentive scheme to promote coal gasification, aiming to enhance clean energy production and reduce import dependency. The scheme is expected to advance India's coal gasification targets, strengthen energy security, and spur domestic production of key substitutes like methanol and urea.

The Union Cabinet has unveiled an ambitious Rs 37,500-crore incentive scheme aimed at promoting coal gasification projects. This move, announced on Wednesday, is designed to boost clean energy production while minimizing dependency on imports of liquefied natural gas (LNG), urea, and methanol.

According to the government, the scheme targets gasifying 75 million tonnes of coal, propelling India toward its national target of gasifying 100 million tonnes by 2030. Currently, the nation imports over 50% of its LNG, which is expected to decline as domestic production ramps up. Urea and ammonia importation will also see significant reductions.

The scheme supports financial incentives up to 20% of the project's plant and machinery costs, selected through a transparent process. This initiative builds on previous missions and reforms, providing policy certainty for long-term investments. With 401 million tonnes of known coal reserves, India stands poised to strengthen its energy security while fostering economic growth.