Surface coal gasification makes a strong case for business: Kishan Reddy to investors

Published 11 June 2026 · politics

Union Minister of Coal and Mines G. Kishan Reddy said that India’s surface coal gasification programme, for which the Union Cabinet recently approved a ₹37,500

Union Minister of Coal and Mines G. Kishan Reddy said that India’s surface coal gasification programme, for which the Union Cabinet recently approved a ₹37,500 crore financial support, will be a major business as well as nation building opportunity for investors. Addressing a roadshow to promote surface coal or lignite gasification, organised here on Thursday by the Coal Ministry, the Union Minister also sought to underscore the continued role of coal in powering the economy. The Cabinet has approved a total of ₹46,000 crore incentive support for underground and surface coal gasification programmes, which is expected to attract projects entailing ₹4 lakh crore investment and generate several lakh jobs.

The draft Request for Proposal (RFP) for the surface coal gasification programme has been placed in public domain for comments and suggestions, Mr. Reddy said, urging stakeholders to participate in the programme with confidence. India’s coal or lignite gasification programme seeks to achieve a target of gasifying 100 million tonnes (MT) of coal by 2030 thus strengthening energy security and reducing dependence on imports of key products such as LNG, urea, ammonia and methanol. Coal gasification is closely linked to the future of India’s manufacturing sector, especially energy, fertilizer and steel, the Union Minister said, asserting India is ready to enter coal gasification in a big way in a decade.

With nearly 400 billion tonnes of coal reserves, India is the fifth largest in the world and has sufficient availability for several decades. India is the world’s second-largest producer and consumer of coal, with nearly 70% of its electricity generation dependent on coal and millions of livelihoods linked to the sector. Emphasising the need for smarter utilisation of the resource, he said that coal gasification offers a strategic pathway to convert domestic coal into value-added products, strengthen energy security, reduce import dependence and enhance economic resilience. Union Minister of State for Coal and Mines Satish Chandra Dubey underscored the strategic importance of coal gasification in realising the vision of a self-reliant and developed India.

Coal Secretary Vikram Dev Dutt said recent developments in West Asia have reinforced the need to build resilient domestic supply chains and reduce dependence on imports. He emphasised that the Union Cabinet has approved the Scheme and that Central support, State incentives, assured coal linkage and downstream infrastructure together create a compelling investment ecosystem.