Government Readies ₹37,500-Crore Push to Boost Coal Gasification.

The Union Cabinet is expected to soon approve a ₹37,500-crore incentive scheme aimed at promoting coal gasification projects, in a move designed to boost cleaner energy production and reduce import dependence, according to sources.

Officials said the Ministry of Coal has already prepared a Cabinet note outlining the proposed scheme and its financial outlay. The initiative is expected to accelerate the development of surface coal and lignite gasification projects across the country.

The scheme seeks to enhance self-reliance by cutting dependence on imports of key commodities such as LNG, urea, ammonium nitrate, ammonia, coking coal (via DRI), methanol, and DME. It also aims to improve the utilisation of domestic coal and lignite resources for the production of fuels and chemicals.

The push aligns with the government’s broader target of achieving 100 million tonnes of coal gasification capacity by 2030, positioning the sector as a key component of India’s evolving energy strategy.