GS3PIB · Current Affairs
Promotion of coal gasification and clean coal technologies—targets and financial/coal linkage/policy support
Government announced capacity and policy-linked support to expand coal gasification under the National Coal Gasification Mission, including a new ₹37,500 crore scheme.
SP
Samachar Pathshala Desk
Published 29 Jul 2026 · 1 min
Key takeaways
- Coal gasification converts solid coal into gas (including syngas), which can feed downstream production like fuels and chemicals.
- Coal linkage auction support creates a new syngas leading to coal gasification sub-sector and keeps coal linkage tenure at 30 years.
- Underground coal gasification gasifies coal without full surface mining, using a government framework and guidelines for pilot projects.
- Performance Bank Guarantee is a bank-backed assurance that a project will meet contract performance obligations; the government approved waivers and rebates linked to it.
What happened: Government targets expansion of coal gasification capacity with new schemes and support
The Ministry of Coal announced capacity targets and project-linked support for coal gasification to increase domestic coal’s value-added uses. The National Coal Gasification Mission target is achieving 100 Million Tonnes (MT) of coal gasification capacity by 2030.
The UPSC angle
GS3
Capacity targets paired with coal supply and project-risk support
UPSC may treat the announcement as an example of how India uses (1) capacity targets, (2) capex-linked financial incentives, and (3) coal-linkage and UCG policy adjustments to reduce project risk and push private investment towards coal gasification.
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