Amid the energy crisis, the Cabinet has approved a ₹37,500 crore coal gasification scheme, which will produce gas, chemicals and fuel from coal.

 Coal Gasification: Currently, India's coal gasification capacity is approximately 12 MTPA, but the government plans to increase this capacity several times over the next few years. It is estimated that this sector could attract investments exceeding ₹4 lakh crore.

Coal Gasification: Amid concerns over energy supply, the central government has approved a major scheme worth around ₹37,500 crore to promote coal gasification.The government aims to develop 100 million tonnes (MT) coal gasification capacity in the country by 2030.The main objective behind this is to reduce dependence on import of oil and natural gas, make better use of domestic resources and make India more self-reliant in terms of energy security.

Currently, India's coal gasification capacity is approximately 12 MTPA, but the government plans to increase this capacity several-fold in the coming years. It is estimated that this sector could attract investments exceeding ₹4 lakh crore.

After all, what is Coal Gasification?

Coal gasification is a technology that doesn't directly burn coal. Instead, the coal is processed at very high temperatures with limited oxygen, steam, or carbon dioxide.This produces a special type of gas called syngas, or synthetic gas. This syngas can be used in many industries.

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Methanol, Fertilizer, Ammonia, Synthetic Natural Gas (SNG), Chemical Products and many types of fuels are prepared from this.This means that the government no longer wants to limit coal to just power generation, but wants to make high value chemicals and fuel from it.

Point                                          Details

Total approved scheme        ₹37,500 cror
Target for 2030:                 100 MT of Coal                                                              Gasificatio
Current capacity.                  Around 12 MTP
Potential investment.           ₹4 lakh crore+
Main Objective:                  Reduce imports,                                               increase domestic                                                      production.     

  Main Products:          Methanol,Ammonia                                                  Fertilizer, SNG.

 Major Companies:          Coal India, BHEL.

Why did the government's focus increase?

India is one of the world's largest coal producers. While the country has large reserves, it remains heavily dependent on imports for oil and gas.Billions of dollars in foreign exchange are spent every year. The government wants to increase the “value-added” use of domestic coal.If successful on a large scale, coal gasification could reduce natural gas and crude oil imports. Furthermore, this initiative is also considered part of the "Developed India 2047" vision.