India's push for coal gasification: Benefits, challenges, and government initiatives

India is actively promoting coal gasification to convert coal into synthetic gas (syngas), which can be used to produce various chemicals like urea, methanol, and hydrogen, reducing reliance on imports. The government aims to gasify 100 million tonnes of coal by 2030, with a target of 75 million tonnes for lignite. An outlay of ₹8,500 crore has been approved for 2024, with ₹6,233 crore for private and public sector projects. Coal gasification offers a cleaner alternative to direct coal burning, reducing emissions, and supports energy security, but faces challenges related to cost, technology, and environmental concerns, requiring significant investment and policy support.

Key Points

  • India is promoting coal gasification to convert coal into syngas, reducing dependence on imports for chemicals and energy.
  • Syngas produced from coal gasification can be used for manufacturing urea, methanol, and hydrogen.
  • The government aims to gasify 100 million tonnes of coal by 2030, including 75 million tonnes of lignite.
  • Financial incentives, including an outlay of ₹8,500 crore, are being provided to support coal gasification projects.
  • Coal gasification offers environmental benefits by reducing emissions compared to direct coal burning, but faces technological and economic hurdles.

Exam Facts

  • Target: 100 million tonnes of coal gasification by 2030.
  • Financial outlay: ₹8,500 crore package (approved in January 2024).
  • Syngas applications: urea, methanol, ammonia, synthetic natural gas (SNG), hydrogen.
  • Ministries involved: Coal, Petroleum and Natural Gas, Department for Promotion of Industry and Internal Trade.

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All current affairs of 31 May 2026