India Fuels Energy Security: ₹37,500 Crore Coal Gasification Push to Cut Imports

The Ministry of Coal in India has just opened applications for its massive ₹37,500 crore scheme to boost coal gasification, a cleaner way to use coal, aiming to slash imports and supercharge domestic energy and chemical industries. This critical initiative, approved by the Union Cabinet in May 2026, seeks to attract an astounding ₹2.5-3 lakh crore in investments and create 50,000 new jobs. This isn't just about burning less coal; it's a strategic pivot to transform India's abundant coal and lignite reserves into high-value products like synthetic natural gas, methanol, and ammonia, vital for fertilizers and fuels. The move comes as India grapples with heavy reliance on imported chemicals and energy, an issue amplified by recent global supply chain disruptions. By promoting coal gasification, which significantly reduces pollutants compared to traditional combustion and allows for Carbon Capture, Utilisation, and Storage (CCUS), India aims to achieve its ambitious target of gasifying 100 million tonnes of coal by 2030, a key step towards energy self-reliance and its net-zero emissions goal by 2070. With applications open until September 7, 2026, the scheme has already seen strong interest from public sector enterprises, private companies, and technology providers, signalling a robust uptake in this 'coal-to-chemicals' revolution. The government is banking on this enhanced financial support to improve project viability, reduce India's import bill by tens of thousands of crores annually, and solidify the 'Atmanirbhar Bharat' vision. Industry watchers will be closely monitoring the selection process and the initial projects to gauge the scheme's effectiveness in transforming India's industrial landscape and energy security.