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[BUSINESS] · India · 2 sources

India's ₹37,500‑crore Coal Gasification Scheme Approved

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a ₹37,500 crore programme to gasify roughly 75 million tonnes of coal and lignite annually, with a longer‑term goal of 100 million tonnes by 2030. The scheme is intended to produce synthesis gas (syngas) for power generation, synthetic natural gas, methanol, ammonia and urea, thereby cutting India's dependence on imported LNG, ammonia and fertilisers, which cost the exchequer about ₹2.77 lakh crore per year.

The plan is expected to unlock private investment of ₹2.5–3 lakh crore, generate thousands of jobs and create new industrial hubs in coal‑rich states such as Jharkhand, Chhattisgarh, Odisha and Madhya Pradesh. Technical challenges include the high ash content of Indian coal, which is being addressed with fluidised‑bed gasifier technology. The initiative forms part of the National Coal Gasification Mission launched in 2021 and aims to enhance energy security while reducing exposure to global market volatility.