Cabinet Approves Rs 37,500 Cr Coal Gasification Scheme to Boost Energy Security
The scheme aims to accelerate the country’s target of gasifying 100 million tonnes of coal by 2030, while reducing dependence on imports of LNG, urea, ammonia and methanol. It also includes a major policy reform extending coal linkage tenure up to 30 years for coal gasification projects under the non-regulated sector linkage auction framework.
The government said the scheme will support new coal and lignite gasification projects with incentives of up to 20% of plant and machinery costs, targeting gasification of around 75 million tonnes of coal and lignite. Financial support for a single project will be capped at Rs 5,000 crore.
The initiative is expected to attract investments of Rs 2.5 lakh crore to Rs 3 lakh crore and generate around 50,000 direct and indirect jobs across coal-bearing regions. The government estimates annual revenue generation of about Rs 6,300 crore from coal utilisation under the programme.
India currently holds around 401 billion tonnes of coal reserves and 47 billion tonnes of lignite reserves. The government said expanding domestic gasification capacity will strengthen energy security, reduce import dependence and support the goals of Atmanirbhar Bharat and Make in India.
Published on:
14 May 2026
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