Surface coal gasification makes strong business case: Kishan Reddy for investors

Union Coal Minister G. Kishan Reddy and Satish Chandra Dubey, Minister of State for Coal and Mines, in Hyderabad on Thursday. | Photo credit: RAMAKRISHNA G

Coal and Mines Minister G Kishan Reddy said India’s surface coal gasification programme, for which the Union Cabinet recently approved a financial support of ₹ 37,500 crore, will be a significant business opportunity for investors as well as a nation-building opportunity.

Addressing a roadshow to promote surface gasification of coal or lignite organized by the Coal Ministry here on Thursday, the Union Minister also sought to highlight the continued role of coal in driving the economy. The Cabinet has approved incentive support totaling ₹46,000 crore for underground and surface coal gasification programmes, which is expected to attract projects involving investments of ₹4,000 crore and create several million jobs.

A draft Request for Proposal (RFP) for the Surface Coal Gasification Program has been released for comments and suggestions, Mr. Reddy said, urging stakeholders to participate in the program with confidence. India’s coal or lignite gasification program aims to achieve the target of gasifying 100 million tonnes (MT) of coal by 2030, thereby enhancing energy security and reducing import dependence of key products such as LNG, urea, ammonia and methanol.

Coal gasification is closely linked to the future of India’s manufacturing sector, particularly power, fertilizers and steel, a Union minister said, declaring that India is poised to enter coal gasification in a big way in a decade. With nearly 400 billion tons of coal, India is the fifth largest in the world and has enough availability for several decades. India is the world’s second largest producer and consumer of coal, with nearly 70% of its electricity generation dependent on coal and millions of livelihoods linked to the sector.

Emphasizing the need for smarter use of the resource, he said coal gasification offers a strategic route to transform domestic coal into value-added products, enhance energy security, reduce import dependency and strengthen economic resilience.

Minister of State for Coal and Mines Satish Chandra Dubey emphasized the strategic importance of coal gasification in realizing the vision of a self-sufficient and developed India.

Coal Minister Vikram Dev Dutt said recent developments in West Asia reinforced the need to build resilient domestic supply chains and reduce dependence on imports. He pointed out that the Union Cabinet has approved the scheme and that central support, state incentives, assured coal connectivity and downstream infrastructure combine to create an impressive investment ecosystem.

Published – 11 Jun 2026 23:11 IST