New Delhi, May 13 (PTI) The industry players on Wednesday welcomed the enhanced policy support for coal gasification and described it as a bold, timely and strategic intervention at a crucial geopolitical moment for global energy and commodity markets.
The Union Cabinet approved a Rs 37,500-crore incentive scheme to promote coal gasification projects, aimed at boosting clean energy production and reducing dependence on forex-guzzling imports of LNG, urea, and methanol, while insulating the country from global price volatility and supply chain disruptions.
The announcement comes at a time when the world is witnessing LNG shortages, fertilizer supply disruptions, volatile energy prices and increasing geopolitical uncertainty impacting global trade and industrial supply chains.
New Era Cleantech Solution, a Maharashtra-based company developing a 5 MMTPA coal gasification project in Chandrapur, said that India now has a historic opportunity to convert its vast domestic coal reserves into fertilizers, methanol, hydrogen, DME, fuels and strategic chemicals — reducing import dependence while strengthening the vision of Aatmanirbhar Bharat.
New Era Cleantech is already part of the earlier announced Rs 8,500-crore coal gasification incentive scheme, and has been actively working over the last several years to develop one of India's largest integrated coal gasification and carbon capture, utilisation, and storage (CCUS) projects.
The company stated that the enhanced policy support will further accelerate its proposed 5-million tonne coal gasification project in Maharashtra.
Commenting on the development, the company's Founder & Managing Director, Balasaheb Darade, said, "The countries that controlled oil shaped the last century. The countries that control clean carbon, hydrogen and strategic molecules will shape the next. India now has the opportunity to lead that transformation."
He further added, "India is sitting on one of the world's largest coal reserves. The question is no longer whether we use coal — the question is whether we use it intelligently to build national strength, energy independence and industrial resilience."
The company highlighted that domestic coal gasification can play a transformative role in enabling large-scale import substitution across LNG, fertilizers, methanol, chemicals and industrial feedstocks.
Mission Energy Foundation Director General Ashwinkumar Khatri also welcomed the cabinet's approval of the incentive scheme, saying that it is a landmark step towards accelerating India's clean energy transition, industrial decarbonisation, and utilisation of indigenous energy resources.
"We especially appreciate the visionary leadership and sustained efforts of G Kishan Reddy Ji (coal and mines minister) and the Ministry of Coal in driving strategic policy support for the advancement of the coal gasification ecosystem in India," Khatri said.
The initiative is expected to create strong momentum for investments, technology deployment, and infrastructure development across coal gasification, biomass conversion, waste-to-energy, hydrogen, methanol, DME, and other downstream sectors critical to India’s long-term energy security and industrial growth.
"We believe this announcement will further strengthen industry confidence and accelerate collaborative efforts towards a more sustainable and self-reliant energy future," Khatri added.
The Union Cabinet under the chairmanship of Prime Minister Narendra Modi approved the scheme for promotion of surface coal/lignite gasification projects with a financial outlay of Rs 37,500 crore, an official statement said.
"An outlay of Rs 37,500 crore has been kept for this scheme, and there will be an investment of around Rs 3 lakh crore in this, and the projects will be put up for gasifying 75 million tonnes of coal," Union Information & Broadcasting Minister Ashwini Vaishnaw said in a media briefing.
Coal gasification refers to the process of converting dry fuel into synthetic gas (syngas), which is used as an alternative fuel and helps reduce carbon emissions. This process supports the production of methanol, fertilizers, hydrogen and chemicals, cutting reliance on imports.