Energy Security: India Targets 100 Million Tonnes Coal Gasification by 2030

BHEL, Jindal Steel, Greta Energy, ECL And CIL Share Project And Policy Insights

NEW DELHI (India CSR): India’s coal and energy sector is targeting the gasification of 100 million tonnes of coal by 2030, as the Ministry of Coal organised a BRICS Side Event in New Delhi on June 24, 2026, with participation from BHEL, Jindal Steel Limited, Greta Energy, Eastern Coalfields Limited, Coal India Limited and BRICS delegates from Russia, Ethiopia and the United Arab Emirates to discuss clean coal technologies, coal gasification, energy security and industrial development.

The event brought together senior government officials, representatives from public sector enterprises, industry, technology providers and international delegates. The focus was on the role of coal gasification in supporting cleaner utilisation of coal and strengthening India’s industrial and energy framework. It connected India’s national target with technology development, project implementation, coal linkages, financial incentives and international cooperation.

• BRICS Delegates Discuss Coal Gasification, Energy Security And Cleaner Use Of Domestic Coal Resources
• Public Sector Enterprises And Industry Share Technology, Policy And Project-Level Insights

Rs.37,500 Cr Scheme for Promotion of Surface Coal/Lignite Gasification Projects

It is worth mentioning that the Union Cabinet, on May 13, 2026 chaired by the Prime Minister Narendra Modi has approved a Scheme for Promotion of Surface Coal/Lignite Gasification Projects with a financial outlay of Rs.37,500 crore. The Scheme marks a major step towards accelerating India’s coal/lignite gasification programme, advancing the national target of gasifying 100 Million Tonnes (MT) of coal by 2030, strengthening energy security, and reducing dependence on imports of key products such as LNG (more than 50% imported), urea (~20% imported), ammonia (~100% imported), and methanol (~80–90% imported).

In a significant accompanying reform, the Government has also extended coal linkage tenure up to 30 years under the “Production of Syngas leading to Coal Gasification” sub-sector in the Non-Regulated Sector (NRS) linkage auction framework, providing long-term policy certainty for investment in coal gasification projects.

Clean Coal Agenda

The Ministry of Coal organised the side event with a clear focus on clean coal technologies. Coal gasification was placed at the centre of the discussion because of its relevance to India’s coal-based energy and industrial economy. Coal gasification enables the conversion of coal into syngas. This gas can be used for producing ammonia, methanol, hydrogen, synthetic fuels, direct reduced iron and other value-added products. These products are important for several industrial sectors. The discussion also underlined that coal gasification may help India use its domestic coal resources more efficiently. It was presented as a technology pathway that can support industrial development while reducing dependence on imports in selected sectors.

India’s import bill for key substitutable products, including LNG, urea, ammonium nitrate, ammonia, coking coal, methanol, DME and other items, stood at around Rs. 2.77 lakh crore in FY2025. The ongoing geopolitical situation in West Asia has further highlighted this import dependence as a strategic vulnerability.

Strengthening India’s Energy Security

Delivering the keynote address, Sanoj Kumar Jha, Additional Secretary, Ministry of Coal, highlighted the role of coal gasification in strengthening India’s energy security and supporting industrial growth. He said coal gasification can help convert coal into syngas, which can be used for the production of ammonia, methanol, hydrogen, synthetic fuels, direct reduced iron and other value-added products. Jha noted that the technology has the potential to reduce import dependence. He also said it can promote efficient use of domestic coal resources. His remarks reflected the government’s policy focus on using coal in a more productive and technology-driven manner.

India’s Target

The Ministry of Coal reiterated the Government of India’s commitment to achieving the target of gasifying 100 million tonnes of coal by 2030. According to the Ministry, this target is being pursued through policy support, financial incentives, assured coal linkages and coordinated efforts across ministries. These measures are intended to support project development and wider adoption of coal gasification technologies.Jha also highlighted the progress being made through various coal gasification projects. He stressed the importance of collaboration among BRICS countries in advancing clean coal technologies.

Key Facts Table

Corporate Participation

Several public sector and industry organisations made presentations during the workshop. Bharat Heavy Electricals Limited presented on coal gasification technology. The presentation focused on the technology aspects of coal gasification and its relevance to clean coal applications. Jindal Steel Limited and Greta Energy shared details of their coal gasification projects. They also discussed the relevance of the technology for BRICS countries. Their participation showed the role of industry in technology development and project-level learning.

Eastern Coalfields Limited presented the progress of the Kasta Underground Coal Gasification Pilot Project. The project is significant because underground coal gasification remains an important area of technical and policy interest. The Nominated Authority highlighted coal block allocation and policy initiatives for underground coal gasification. Coal India Limited showcased coal linkage provisions and the coal gasification projects being undertaken by the company.

Policy Discussion

An interactive panel discussion was also held during the event. It covered different aspects of coal gasification and the conditions required for wider adoption. The discussion included technology, project economics, geological challenges, processing challenges, utilisation of high-ash Indian coal, and policy and financial support. These issues are important because coal gasification projects require technical clarity, investment planning and institutional coordination. The panel also brought attention to the practical challenges involved in implementing coal gasification at scale. High-ash Indian coal, geological conditions and project economics remain important factors in technology adoption.

BRICS Cooperation

The event provided a platform for the exchange of knowledge and experiences among BRICS countries and other stakeholders. Delegates from Russia, Ethiopia and the United Arab Emirates participated in the discussions. The Ministry highlighted the role of international cooperation in advancing clean coal technologies. The BRICS platform was used to share experiences, discuss policy approaches and explore areas of collaboration. The participation of international delegates also gave the event wider institutional relevance. It placed India’s coal gasification target within a broader framework of energy security, industrial development and technology cooperation.

As India works towards the 2030 target, the progress of individual projects, investment commitments, technology performance, environmental outcomes and measurable industrial benefits will remain important areas to watch.

Background

India holds one of the world’s largest coal reserves (~401 billion tonnes) and lignite reserves (~47 billion tonnes). Coal accounts for over 55% of the country’s energy mix. Gasification converts coal/lignite into ‘synthesis gas’ (syngas), a versatile feedstock for producing fuels and chemicals domestically, enabling India to substitute high-value imports and insulate itself from global supply disruptions and price volatility.

India’s import bill for key substitutable products LNG, urea, ammonium nitrate, ammonia, coking coal, methanol, DME and others, stood at approximately Rs.2.77 lakh crore in FY2025, a vulnerability further exposed by the ongoing geopolitical situation in West Asia. Building on the National Coal Gasification Mission (2021) and a Rs.8,500 crore scheme approved in January 2024 (under which 8 projects worth Rs.6,233 crore are under implementation), the new Scheme builds on this momentum with significantly enhanced support.

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