Archive · 16 Jan 2026
India to Boost Coal Gasification with Rs 50,000-Crore Budget Push
The Indian government is planning a big investment of ₹50,000 crore in coal gasification.
This means turning coal into a cleaner gas that can be used for power and making other useful things like fertilizers.
The goal is to reduce the need for imported gas and make better use of India's coal resources.
The money will help both government and private companies build these projects.
This is a big step towards using coal in a cleaner way while India works towards using more renewable energy.
India's Union Budget to include a ₹50,000-crore incentive for coal gasification.
Aim is to reduce import dependence and revive stranded gas-based power capacity.
Coal gasification converts coal into synthetic gas for power and industrial use.
Government and private sector expected to invest in large-scale projects.
Technology choices are being tailored to suit the quality of Indian coal.
- Who
- Indian government, energy PSUs, private developers, lenders
- What
- ₹50,000-crore incentive push for coal gasification
- When
- Upcoming Union Budget
- Where
- India
- Why
- To cut import dependence, revive stranded gas-based power capacity, and rebalance energy mix
- Budget Allocation
- ₹50,000 crore
- Target Capacity
- 100 million tonnes per annum by 2030
- Current Gas-Based Power Capacity
- 20,000 MW
- Initial Incentive Scheme
- ₹8,500 crore in 2024
- Key Technologies
- Fluidised bed gasification
- Key Players
- Coal India, NTPC, BHEL, GAIL, NLC India, SAIL
- Private Sector Investment
- ₹2,000 crore secured earlier
- Indian Coal Ash Content
- 30–45%