India pushes for coal gasification projects worth ₹37,500 crore, marking a significant step toward energy self-sufficiency.

 India has approved a ₹37,500 crore (375) billion) initiative to promote surface coal and lignite gasification projects, with a target of 100 million tonnes (MT) by 2030 for energy self-reliance. The project intends to minimize import dependence for ammonia, methanol, and LNG, create 50,000 employment, and attract up to ₹3 lakh crore in investments.

Coal Gasification Push:

• Financial Outlay & Structure: The Cabinet approved a total of ₹37,500 crore in incentives for new surface coal/lignite gasification plants, with a focus on creating syngas.
• Target and Goal: The effort aims to gasify 100 million tons of coal by 2030, increasing energy security by manufacturing chemicals and fuels domestically.
• Incentive Mechanism: Incentives are established at a maximum of 20% of plant and machinery cost, capped at ₹5,000 crore per project and ₹12,000 crore per entity, and disbursed in four equal installments.

Economic Impact:

• Investment & Jobs: Projects are estimated to attract ₹2.5 to ₹3 lakh crore in investment and create approximately 50,000 jobs in coal-bearing regions.
• Import Reduction: The measure will drastically reduce the reliance on imported liquefied natural gas (LNG), ammonia, and methanol.

Implementation & Technology: 

• Through competitive bidding, the program promotes the use of domestic gasification technologies without regard to technology.

Strategic Focus: 

• By converting coal into value-added products like urea and cleaner fuels, it represents a significant step towards greener energy.