India accelerates coal gasification to boost energy security

India is accelerating its coal gasification efforts to enhance energy self-reliance and reduce reliance on imports such as LNG, urea, and methanol. A central component of this push is Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Coal India Limited and BHEL. Dr. Peeyush Kumar serves as the Managing Director of BCGCL, leading the company's efforts in coal-to-chemicals operations, including a landmark project in Odisha.

The government has implemented a Rs. 37,500-crore scheme to promote surface coal and lignite gasification projects. This initiative aims to support the gasification of approximately 75 million tonnes of coal and lignite, contributing to the National Coal Gasification Mission's goal of 100 million tonnes by 2030. The scheme provides incentives of up to 20% of plant and machinery costs through competitive bidding and offers long-term coal linkage tenures of up to 30 years.

Initial interest in the program has been significant, with proposals submitted by companies including Adani Enterprises, NTPC, Talcher Fertilisers, Gallantt Ispat, and Shyam Sel & Power. The government anticipates that these efforts could catalyze investments between Rs. 2.5 lakh crore and Rs. 3 lakh crore across roughly 25 projects, potentially creating nearly 50,000 jobs.