Centre bets big on coal gasification; targets ₹4 lakh cr investment, ₹3 lakh cr savings, 1 lakh jobs
The Union Ministry of Coal and Mines, on Monday, outlined an ambitious coal gasification push, targeting investments of ₹4 lakh crore and save approximately ₹3
The Union Ministry of Coal and Mines, on Monday, outlined an ambitious coal gasification push, targeting investments of ₹4 lakh crore and save approximately ₹3 lakh crore in foreign exchange while generating employment for nearly one lakh people. The Centre is prioritising both surface and underground coal gasification to reduce import dependence while unlocking high-value by-products such as ammonia, methanol, hydrogen, fertilisers, chemicals and petrochemicals, said Union Minister G. Kishan Reddy at a press conference. “We have already commenced surface gasification and are allocating 100 million tonnes of coal for this purpose with incentives worth ₹46,000 crore. India has significant reserves of deep-seated coal and underground gasification offers a viable alternative where conventional mining is not feasible.
To promote the initiative, a roadshow on coal gasification will be held in Hyderabad on the 11th of this month, following a similar event in Delhi last week, while another is scheduled in Mumbai next week,” he said. Highlighting reforms over the past decade, the Minister said India has the world’s fifth-largest coal reserves and is the second-largest producer and consumer, with output crossing one billion tonnes. The sector remains the backbone of the country’s energy mix, directly employing around five lakh people and supporting another 25 lakh jobs indirectly. Currently, about 189 million tonnes of coal is available across mining companies, transit networks and power plants — stocks sufficient to meet demand for around 85 days.
Owing to policy reforms and transparent auctions, coal imports fell by 4% last year, resulting in savings of about ₹60,000 crore. The government is also encouraging private sector participation by expediting clearances. Commercial mining is expected to produce up to 800 million tonnes, with job creation set to increase in tandem, said Mr. Reddy. The Minister stated that mine closure and land reclamation is being taken up for environment sustainability with 147 abandoned mines targeted for closure by 2028. Committees involving local communities, district authorities and voluntary organisations have been formed across 600 districts to oversee the process. The government is also documenting before-and-after conditions and transforming former mining sites into water bodies, green spaces and solar parks, he explained.
The Minister noted that over the past decade, India has emerged as the world’s second-largest producer of aluminium and steel, and third in zinc and limestone. To support mining-affected communities, regulations mandate that 2% of mining proceeds be channelled to District Mineral Foundations (DMFs) for welfare and development in affected areas, while States retain about 90% of mining revenues, boosting their fiscal resources. Referring to Singareni Collieries, the Minister said employee insurance cover has been enhanced to ₹1 crore, aligning with Coal India standards, though he expressed concern over the lack of income-tax exemptions. With coal demand rising, incentives for opencast mining continue even as underground mining is, he added.
The BriefWire