Government sets coal gasification target of 100 MT by 2030; approves ₹37,500 crore surface gasification incentive scheme
Government raises coal gasification push with a new incentive scheme and a 2030 capacity target
- The Ministry of Coal is promoting coal gasification to produce coal-to-chemical outputs, methanol, and synthetic natural gas.
- The Government of India approved a new incentive scheme for surface coal and lignite gasification projects with a larger outlay than the earlier scheme.
- The Ministry of Coal says existing capacity is a mix of operational plants and projects under implementation, which shows that the execution stage is still incomplete.
The Ministry of Coal has expanded India’s coal gasification push by approving a new incentive scheme for surface coal and lignite gasification projects and by reiterating a national target of gasifying 100 million tonnes of coal by 2030. The policy matters because coal gasification is being promoted as a route to coal-to-chemical production, methanol, and synthetic natural gas, all of which have implications for energy security and industrial self-reliance.
What happened now
The Government of India approved a new scheme on 13 May 2026 for Promotion of Surface Coal/Lignite Gasification Projects with a financial outlay of ₹37,500 crore. The Ministry of Coal says the scheme is expected to utilise approximately 75 million tonnes of coal and substantially contribute to the national gasification target.
UPSC may examine coal gasification as a cleaner-use pathway for domestic coal, the structure of incentive schemes, and the trade-off between energy security, emissions, and industrial feedstock needs. Questions may also test the difference between operational capacity, projects under implementation, and policy targets.
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