New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi has approved a major Scheme for Promotion of Surface Coal/Lignite Gasification Projects with a financial outlay of ₹37,500 crore.
The initiative aims to accelerate India’s coal and lignite gasification programme and support the national target of gasifying 100 million tonnes of coal by 2030. It is also expected to strengthen energy security and reduce dependence on imports of key products such as LNG, ammonia, methanol and urea.
According to the government, the scheme will incentivise large-scale gasification projects to produce syngas and downstream chemicals, while promoting indigenous technologies and reducing reliance on foreign supply chains.
Officials said the programme is expected to attract investments of ₹2.5–3 lakh crore and generate around 50,000 direct and indirect jobs across coal-bearing regions of the country.
The scheme provides financial incentives of up to 20% of plant and machinery costs, with a cap of ₹5,000 crore per project. Incentives will be disbursed in stages based on project milestones through a transparent bidding process.
India, which holds one of the world’s largest coal reserves, aims to use gasification to convert coal into synthesis gas, enabling domestic production of fuels and chemicals and reducing import dependence.
The government said the scheme builds on earlier initiatives under the National Coal Gasification Mission and reinforces the broader vision of Atmanirbhar Bharat through energy self-reliance and industrial development.
