New Delhi: Coal minister G Kishan Reddy on Thursday said coal gasification can significantly reduce India's dependence on imported methanol, ammonia, fertilisers and other critical chemicals, helping shield farmers, industries and consumers from global price volatility and trade disruptions. Speaking at a roadshow on the scheme to promote surface coal gasification projects, Reddy urged companies to set up coal gasification plants, citing assured coal linkages and multiple government initiatives to support the sector.The government recently approved an additional ₹37,500 crore financial support package for coal gasification projects. In 2024, it launched a ₹8,500 crore incentive scheme under which eight projects have received approval.Also read | Can India convince the world about its growth story?Coal secretary Vikram Dev Dutt said the ministry may issue a draft request for proposals by next week for stakeholder consultations, allowing the scheme to be rolled out by the end of June or the first week of July. The ministry will hold two more roadshows in Hyderabad and Mumbai in the first two weeks of June.Dutt said there would be no offtake guarantee under the scheme for now and companies would need to factor in market dynamics while developing products.Also read | A blueprint for West Bengal’s evolution from an entrepot to a production hubIndia's coal has unique characteristics, particularly its high ash content, making technology selection critical to align with feedstock quality, project economics and downstream products.
Coal gasification can help cut dependence on imports: G Kishan Reddy
India aims to cut reliance on imported chemicals through coal gasification. The government is offering significant financial support and incentives for new projects. Companies have been urged to invest in coal gasification plants. A draft proposal is expected soon, with the scheme likely to launch by early July.
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