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India’s Coal Gasification Push Targets Energy Self-Reliance
India wants to turn more of its own coal into useful fuels and industrial materials.
The government approved a large scheme to help companies build coal-gasification plants.
These plants can make products such as urea, methanol, ammonia and synthetic natural gas.
The scheme is intended to reduce India’s need to import some energy and chemical products.
Seven proposals were submitted in the first application round.
Another type of gasification can produce heat for factories that currently use furnace oil, diesel or coal directly.
CASE Group says one of its projects in Odisha has already replaced much of the furnace oil used at a steel plant.
Dr Roger Kumar says India should support both chemical production and industrial heat projects.
The Union Cabinet approved a Rs. 37,500-crore scheme for surface coal and lignite gasification on 13 May 2026.
The scheme aims to support gasification of about 75 million tonnes of coal and lignite and help reach a 100-million-tonne national target by 2030.
Seven companies submitted proposals in the first application round for projects involving urea, synthetic natural gas, syngas and direct reduced iron.
The government is offering incentives of up to 20% of plant and machinery costs and coal-linkage tenures of up to 30 years for syngas projects.
CASE Group says its Odisha installation has replaced significant furnace-oil use with gasification based on high-ash coal.
- Who
- The Government of India, participating companies and Dr Roger Kumar of CASE Group.
- What
- A Rs. 37,500-crore scheme is promoting surface coal and lignite gasification projects.
- Where
- India, including a cited CASE Group installation at Rungta Mines Limited’s Kamanda steel plant in Odisha.
- When
- The Union Cabinet approved the scheme on 13 May 2026; the first application round closed on 7 September and the second opened on 8 September.
- Why
- The scheme is intended to support domestic production of energy and chemical products, reduce imports and advance India’s energy self-reliance.
Key facts
- Scheme size
- Rs. 37,500 crore
- Cabinet approval
- 13 May 2026
- Targeted gasification
- About 75 million tonnes of coal and lignite
- National mission target
- 100 million tonnes by 2030
- Project incentive
- Up to 20% of plant and machinery cost
- Expected investment
- Rs. 2.5–3 lakh crore across about 25 projects
- Expected employment
- Nearly 50,000 jobs
Quotes
Dr Roger Kumar
Founder and Managing Director of CASE Group
“India’s gasification journey must be engineered around the coal India actually has.”
theprint.in
“Converting our own coal into these products is a matter of economic security.”
theprint.in








