13 May: The Union Cabinet has approved a major ₹37,500 crore coal gasification scheme aimed at reducing India’s dependence on imported fuels and strengthening domestic energy production capabilities.
The initiative is expected to promote cleaner utilisation of coal resources while supporting the country’s long-term energy security and industrial growth objectives.
Officials said the scheme focuses on converting coal into gas that can be used for producing chemicals, fertilisers, synthetic fuels, and other industrial products. Coal gasification is considered an important technology for reducing reliance on imported natural gas, methanol, and other energy-related products.
The government believes the project will help utilise India’s vast coal reserves more efficiently while encouraging technological advancement and investment in the energy sector.
According to officials, the approved scheme includes financial support and policy measures designed to accelerate coal gasification projects across the country. The initiative is also expected to create employment opportunities and attract private sector participation in advanced energy infrastructure.
Experts noted that India imports significant quantities of energy products and industrial feedstock every year. Expanding coal gasification capacity could help lower import bills and improve self-reliance in key sectors such as fertilisers, petrochemicals, and power generation.
The government has been actively promoting diversification of energy resources as part of broader efforts to strengthen economic resilience and industrial development.
Industry analysts said coal gasification offers an alternative route for using domestic coal reserves while potentially reducing environmental impact compared to conventional coal usage methods. However, they also stressed the importance of adopting efficient and sustainable technologies during implementation.
The scheme aligns with the government’s broader vision of enhancing energy security, boosting manufacturing, and supporting the “Make in India” initiative through increased domestic production capabilities.
Officials added that the programme is expected to encourage research, innovation, and infrastructure development in the energy and industrial sectors over the coming years.
The Cabinet approval marks one of the largest recent investments in India’s coal and energy transformation strategy, reflecting the government’s focus on balancing industrial growth with long-term resource security.
