Rs.8,500cr incentives introduced to support public and private sector projects
Coal and Mines Minister G. Kishan Reddy says coal gasification will be pivotal in strengthening India’s energy security, reducing import dependence, and supporting industrial growth
India’s rapidly expanding economy requires a balanced energy approach that aligns development with sustainability, he told industry leaders, experts, start-ups, researchers, students and policymakers at the Bharat Electricity Summit 2026 on 22 Mar.
He pointed out that the country is experiencing strong growth across manufacturing, infrastructure, digital connectivity, and innovation.
Discussions with industry bodies at the Summit have indicated an estimated Rs.32,000 crore capex pipeline by manufacturers in the power sector, according to Pankaj Agarwal, Secretary (Power). The Summit witnessed an exceptional response, with over 35,000 exhibition attendees, 28 States / Union Territories, 200+ exhibiting companies including 80+ Start-ups, 6,000+ delegates, 300+ speakers, and 100+ conference sessions, reflecting its scale and global significance.
Describing coal gasification as a key transformative technology, Minister Reddy explained that it converts coal into syngas, which can be further used to produce cleaner fuels, chemicals, fertilizers, and hydrogen. This approach enables more efficient and sustainable use of domestic resources while enhancing economic resilience. He also pointed out India’s dependence on imports—approximately 83% of crude oil, 50% of natural gas, and over 90% of methanol and fertilizers—making energy security a strategic priority.
To promote adoption, the Government has launched the National Coal Gasification Mission with a target of 100 million tonnes of gasification by 2030. An incentive framework of Rs.8,500 crore has been introduced to support public and private sector projects, with several large-scale initiatives already underway and investments exceeding Rs.64,000 crore in the pipeline. Advanced technologies such as Underground Coal Gasification (UCG) were also highlighted for their potential to tap previously inaccessible reserves while reducing environmental impact.
The Minister called for a collaborative ecosystem involving industry, academia, start-ups, and research institutions, noting that coal gasification spans multiple sectors including power, oil & gas, and fertilizers. He reaffirmed the Government’s commitment to streamlined approvals, supportive policies, and incentives to encourage early participation and investment.
He expressed confidence that with innovation, indigenous technology development, and coordinated efforts, India can emerge as a global leader in clean coal technologies while advancing energy security, sustainability, and self-reliance.
The Minister also underlined India’s robust coal reserves, estimating nearly 400 billion tonnes—among the largest globally—where coal accounts for about 55% of the energy mix and nearly 74% of electricity generation.
With annual coal demand currently around one billion tonnes and expected to rise significantly by 2047, he emphasized the continued importance of coal. Even as India remains committed to achieving Net Zero emissions by 2070. Fiinews.com
