India’s energy strategy is seeing a renewed push towards coal gasification, with the government positioning the technology as a key lever to reduce import dependence, optimise domestic coal utilisation, and support industrial growth.
Speaking at the Bharat Electricity Summit 2026, Union Minister for Coal and Mines G Kishan Reddy said coal gasification would play a pivotal role in strengthening India’s energy security while enabling industrial expansion.
India continues to rely heavily on coal as a primary energy source. The minister noted that the country holds nearly 400 billion tonnes of coal reserves, among the largest globally. Coal currently accounts for around 55 per cent of India’s energy mix and nearly 74 per cent of electricity generation.
With annual coal demand at approximately 1 billion tonnes and projected to rise significantly by 2047, coal is expected to remain central to India’s energy landscape even as the country pursues its net zero target by 2070.
Coal gasification is being positioned as a more efficient way to utilise these reserves. The process converts coal into syngas, which can be further processed into cleaner fuels, chemicals, fertilisers, and hydrogen.
The move is also aimed at addressing India’s high import dependence. The country currently imports about 83 per cent of its crude oil requirements, 50 per cent of natural gas, and over 90 per cent of methanol and fertilisers.
Against this backdrop, coal gasification is being promoted as a strategic solution to enhance energy security and reduce reliance on imports.
To accelerate adoption, the government has launched the National Coal Gasification Mission, targeting 100 million tonnes of gasification capacity by 2030. An incentive scheme worth ₹8,500 crore has been introduced to support both public and private sector participation.
Large-scale investments exceeding ₹64,000 crore are already in the pipeline, indicating growing industry interest in the sector.
The minister also highlighted advanced technologies such as Underground Coal Gasification, which can help access otherwise unmineable reserves while reducing environmental impact.
He emphasised the need for collaboration between industry, academia, start-ups, and research institutions, noting that coal gasification has cross-sectoral applications spanning power, oil and gas, and fertilisers.
The government, he added, will continue to support the sector through policy measures, streamlined approvals, and incentives aimed at encouraging early investments.
