CM Fadnavis: Vidarbha to be coal gasification hub

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CM Fadnavis: Vidarbha to be coal gasification hub

Synopsis

Chief Minister Devendra Fadnavis and Union Minister G. Kishan Reddy attended a Mumbai roadshow on 18 June 2026 to promote surface coal gasification, declaring Vidarbha as Maharashtra's new industrial hub for the sector, with BPCL, Coal India, and Adani Group among early investors and 2,000 acres of land already allocated.

Key Takeaways

CM Devendra Fadnavis and Union Minister G.
Kishan Reddy attended a coal gasification roadshow in Mumbai on 18 June 2026 .
Vidarbha has been identified as Maharashtra's new industrial centre for coal gasification, leveraging its large coal reserves and steel ecosystem.
India targets 500 GW of clean energy by 2030 ; coal gasification is positioned alongside solar, wind, and green hydrogen as a pillar of energy security.
Companies including BPCL , Coal India , New Era Cleantech , Greta Energy , and the Adani Group have begun investment processes in the state.
The state has allocated 2,000 acres of land for projects and is processing all permissions through the ' Maitri ' portal with defined timelines.
The Central Government has introduced viability gap funding and risk-sharing mechanisms to reduce investor exposure in the sector.
The Chief Minister's Office of Maharashtra announced on Thursday, 18 June 2026 that Maharashtra is positioning itself as a major destination for coal gasification investment, with Vidarbha earmarked as the state's new industrial centre for the sector. The announcement followed a roadshow held in Mumbai to promote surface coal and lignite gasification, attended by Chief Minister Devendra Fadnavis and Union Minister G. Kishan Reddy.

Context

Speaking at the roadshow, CM Fadnavis described coal gasification as a 'critical milestone' in making India self-reliant in the energy sector. He said the technology holds 'great importance' for clean energy, reducing carbon emissions, industrial value addition, and cutting import dependence. The Central Government, he noted, has adopted a 'comprehensive incentive policy' to promote the sector under the leadership of Prime Minister Narendra Modi.

The post quoted Fadnavis as stating that India has set a target of 500 gigawatts of clean energy generation by 2030, and that coal gasification — alongside solar, wind, and green hydrogen — will form a key pillar of energy security. India holds approximately 400 billion tonnes of coal reserves, and gasification offers an opportunity to derive methane, ethanol, urea, various chemicals, and value-added products from those reserves rather than using coal solely for power generation.

Policy Backdrop

The roadshow reflects a policy direction the Central Government has been building since 2020, when the Ministry of Coal announced a target to gasify 100 million tonnes of domestic coal by 2030 and introduced financial incentives for surface coal gasification projects. Subsequent budget cycles introduced viability gap funding and risk-sharing mechanisms designed to reduce investor exposure in a capital-intensive sector.

Fadnavis underlined that the Central Government is acting as a 'partner to industries' by providing large-scale financial assistance to make investments in coal gasification safer and more attractive. Carbon Capture, Utilisation and Storage (CCUS) technology, he said, will help make the industrial sector more sustainable and environmentally compatible.

Stakeholders and Impact

Several major conglomerates have already begun investment processes in Maharashtra's coal gasification sector. BPCL, Coal India, New Era Cleantech, Greta Energy, and the Adani Group were named by Fadnavis as companies that have initiated investments in the state. The government has made 2,000 acres of land available for projects, and all permissions are being routed through the 'Maitri' portal with defined timelines.

Vidarbha's large coal reserves, a growing steel industry ecosystem, and existing infrastructure make it well-suited to anchor this industrial cluster. The region, historically dependent on thermal power and agriculture, stands to gain new industrial employment and downstream chemical and fertiliser manufacturing activity if the cluster materialises at scale.

Union Minister of State Satish Chandra Dubey was also present at the roadshow alongside other dignitaries.

What's Next

CM Fadnavis stated that the state government is 'committed to attracting even larger investments' in the coming period and will make 'every effort' to develop Vidarbha as a national centre for coal gasification and its value-added products. Progress on land allocation and environmental clearances for the announced projects, as well as the pace of approvals through the Maitri portal, will be the near-term indicators of how quickly the cluster takes shape.

With multiple anchor investors already engaged and central incentive frameworks in place, Maharashtra's ability to translate roadshow commitments into operational projects in Vidarbha will determine whether the region's coal wealth can underpin a broader industrial transformation aligned with India's 2030 clean energy and self-reliance goals.

Point of View

Fertilisers, and fuels rather than electricity alone. For CM Fadnavis, anchoring this sector in Vidarbha serves a dual political purpose: it addresses the region's long-standing demand for industrial development while aligning the state with the Centre's Atmanirbhar Bharat energy narrative. The presence of both a state chief minister and a Union Cabinet minister at a sectoral roadshow reflects the degree of political capital being invested in coal gasification as a bridge technology between India's fossil-fuel legacy and its renewable future. Whether investor interest converts into operational capacity will hinge on environmental clearances and land acquisition timelines — the traditional chokepoints for large industrial projects in Maharashtra.
NationPress
3 Aug 2026

Frequently Asked Questions

What is coal gasification and why is Maharashtra promoting it?
Coal gasification converts coal into synthetic gas (syngas) that can be used to produce methane, ethanol, urea, and chemicals, reducing reliance on imported fuels and petrochemicals. Maharashtra is promoting it to leverage Vidarbha 's large coal reserves and attract industrial investment.
Which companies are investing in coal gasification in Maharashtra?
BPCL , Coal India , New Era Cleantech , Greta Energy , and the Adani Group have begun investment processes in Maharashtra's coal gasification sector, according to CM Fadnavis at the 18 June 2026 roadshow.
What is the Maitri portal and how does it help investors?
The ' Maitri ' portal is Maharashtra's single-window clearance system that processes industrial permissions within defined timelines, designed to reduce bureaucratic delays for investors setting up projects in the state.
Why is Vidarbha chosen as the coal gasification hub?
Vidarbha has large coal deposits, a developing steel industry ecosystem, and existing infrastructure, making it naturally suited to host coal gasification clusters and downstream value-added manufacturing.
What is India's coal gasification target?
The Ministry of Coal set a target to gasify 100 million tonnes of domestic coal by 2030 , supported by viability gap funding and risk-sharing mechanisms introduced in subsequent budget cycles.
Nation Press
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