India needs to build indigenous coal chemistry capability for energy security

India's energy security relies on reducing dependence on disrupted resources, as demonstrated by the refining sector's flexibility during the Strait of Hormuz crisis in 2026. The article argues that similar discipline is needed for coal chemistry to produce domestic molecules like Dimethyl Ether (DME) from coal gasification. DME, chemically similar to LPG, can be blended into existing cylinders, reducing LPG imports and saving foreign exchange. The Union Cabinet has approved a ₹37,500 crore scheme to promote coal and lignite gasification, targeting 100 million tonnes annually by 2030, highlighting the strategic importance of indigenous capability.

Key Points

  • India's energy security can be enhanced by developing indigenous coal chemistry capabilities.
  • Producing Dimethyl Ether (DME) from coal gasification can reduce reliance on imported LPG.
  • DME can be blended into existing LPG infrastructure without needing new distribution networks.
  • The Union Cabinet has approved a significant scheme to promote coal and lignite gasification, aiming for 100 million tonnes annually by 2030.
  • Building this capability requires sustained investment and technical discipline, similar to what transformed India's refining sector.

Exam Facts

  • Dimethyl Ether (DME) is a clean-burning gas chemically similar to LPG.
  • The Bureau of Indian Standards has approved blending up to 20% DME with LPG.
  • A 20% DME blend from coal gasification could displace 6.3 million tonnes of LPG imports annually, saving ₹34,000 crore.
  • The Union Cabinet approved a ₹37,500 crore scheme to promote surface coal and lignite gasification by 2030.

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All current affairs of 2 July 2026