Cabinet approves ₹37,500 crore package to boost coal gasification and reduce imports
The Union Cabinet has approved a ₹37,500-crore package to promote coal gasification, a sustainable alternate mining method. This initiative aims to convert coal into syngas or synthetic gas, which can then be used to produce downstream products like urea, methanol, and ammonia, thereby reducing India's import bill for these key products. India's import bill for such products was approximately ₹2.77 lakh crore in FY2025. The scheme targets gasifying 75 million tonnes of coal and lignite by 2030, offering financial incentives up to ₹9,000 crore per project and extending coal linkage tenure to 30 years to encourage investment.
Key Points
- The Union Cabinet approved a ₹37,500-crore package to promote coal gasification.
- The scheme aims to convert coal into syngas for producing downstream products like urea and methanol, reducing import dependence.
- India's import bill for these products was ₹2.77 lakh crore in FY2025, highlighting the strategic importance of this initiative.
- The target is to gasify 75 million tonnes of coal and lignite by 2030, with financial incentives and extended coal linkage tenure.
Exam Facts
- Cabinet approved ₹37,500 crore package.
- India's import bill for key substitutable products was ₹2.77 lakh crore in FY2025.
- Target: gasification of 75 million tonnes of coal and lignite by 2030.
- Financial incentive: up to ₹5,000 crore per project, max ₹9,000 crore for SNG/urea projects, max ₹12,000 crore per entity.
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