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.
Union Minister of State for Coal and Mines Shri Satish Chandra Dubey gave the information in a written reply in the Rajya Sabha.
Background and earlier position
The National Coal Gasification Mission has set a target of 100 million tonnes of coal gasification capacity by 2030. Before the new scheme, the Government of India had already approved an earlier ₹8,500 crore Financial Incentive Scheme on 24 January 2024.
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