Centre bets big on coal gasification; targets ₹4 lakh cr investment, ₹3 lakh cr savings, 1 lakh jobs

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Union Minister for Coal and Mines G. Kishan Reddy addressing a press conference on the achievements, reforms and key initiatives of the Government of India in Hyderabad on Monday. | Photo Credit: SIDDHANT THAKUR

The Union Ministry of Coal and Mines, on Monday, outlined an ambitious coal gasification push, targeting investments of ₹4 lakh crore and save approximately ₹3 lakh crore in foreign exchange while generating employment for nearly one lakh people.

The Centre is prioritising both surface and underground coal gasification to reduce import dependence while unlocking high-value by-products such as ammonia, methanol, hydrogen, fertilisers, chemicals and petrochemicals, said Union Minister G. Kishan Reddy at a press conference.

“We have already commenced surface gasification and are allocating 100 million tonnes of coal for this purpose with incentives worth ₹46,000 crore. India has significant reserves of deep-seated coal and underground gasification offers a viable alternative where conventional mining is not feasible. To promote the initiative, a roadshow on coal gasification will be held in Hyderabad on the 11th of this month, following a similar event in Delhi last week, while another is scheduled in Mumbai next week,” he said.

Highlighting reforms over the past decade, the Minister said India has the world’s fifth-largest coal reserves and is the second-largest producer and consumer, with output crossing one billion tonnes. The sector remains the backbone of the country’s energy mix, directly employing around five lakh people and supporting another 25 lakh jobs indirectly.

Currently, about 189 million tonnes of coal is available across mining companies, transit networks and power plants — stocks sufficient to meet demand for around 85 days. Owing to policy reforms and transparent auctions, coal imports fell by 4% last year, resulting in savings of about ₹60,000 crore.

The government is also encouraging private sector participation by expediting clearances. Commercial