India Boosts Coal Gasification with Rs 37,500 Crore Incentive Scheme

The Union Cabinet has announced a significant Rs 37,500 crore incentive scheme focused on advancing coal gasification projects. This initiative is aimed at reducing India's dependency on imports of LNG, urea, and methanol by bolstering domestic production, particularly in light of global market volatility.

Under the leadership of Prime Minister Narendra Modi, the cabinet aims to gasify 75 million tonnes of coal, thus strengthening the nation's energy security. The plan anticipates an investment of Rs 3 lakh crore, leveraging India's ample coal reserves estimated at 401 billion tonnes.

Incentive allocations are to be determined via a competitive bidding process, with a maximum allocation per project capped at Rs 5,000 crore. This initiative is part of the larger National Coal Gasification Mission, aiming to significantly reduce import costs and insulate the economy from global supply disruptions.

(With inputs from agencies.)