Kishan Reddy: India Targets 100 MT Coal Gasification by 2030
Synopsis
Union Coal Minister G. Kishan Reddy announced a new ₹37,500 crore incentive scheme on 21 July 2026, raising total coal gasification incentives to ₹46,000 crore. The National Coal Gasification Mission targets 100 MT capacity by 2030, with 22.6 MTPA already operational or under implementation through Jindal Steel and Talcher Fertilisers.
Key Takeaways
The government approved a new ₹37,500 crore incentive scheme for coal and lignite gasification projects.
Total government incentives for coal gasification now stand at ₹46,000 crore , combining the earlier ₹8,500 crore scheme with the new allocation.
The National Coal Gasification Mission targets 100 MT of coal gasification capacity by 2030 .
Current pipeline stands at 22.6 MTPA : 8 MTPA (Jindal Steel), 2.6 MTPA (Talcher Fertilisers), and 12 MTPA across eight approved projects.
The scheme aims to boost production of coal-to-chemicals, methanol, and Synthetic Natural Gas to strengthen energy security.
India is the world's second-largest coal producer and seeks to cut import dependence on gas and petrochemicals through domestic gasification.
Union Coal and Mines Minister G. Kishan Reddy on Tuesday, 21 July 2026, announced that the government has approved a new ₹37,500 crore incentive scheme to accelerate the National Coal Gasification Mission, bringing total government incentives to ₹46,000 crore as India pushes toward a target of 100 Million Tonnes (MT) of coal gasification capacity by 2030.
Context
In his post on X, the minister stated that India is 'steadily advancing towards a cleaner, more self-reliant, and energy-secure future' under the leadership of Prime Minister Narendra Modi. He highlighted that 22.6 MTPA of gasification capacity is currently operational or under implementation — comprising 8 MTPA by Jindal Steel Limited, 2.6 MTPA by Talcher Fertilisers Limited, and 12 MTPA spread across eight projects approved under the earlier ₹8,500 crore incentive scheme. The newly approved scheme raises the total incentive outlay to ₹46,000 crore, targeting coal-to-chemicals, methanol, and Synthetic Natural Gas production.
Policy Backdrop
The National Coal Gasification Mission was conceived to convert domestic coal and lignite into syngas, reducing India's dependence on imported natural gas, methanol, and petrochemicals. The policy lineage stretches back to gasification pilots from the 2000s, but the current scale-up — with a formal 100 MT by 2030 roadmap — took shape around 2020–21 as part of the broader Atmanirbhar Bharat framework. The earlier ₹8,500 crore scheme seeded the initial pipeline of projects; the fresh ₹37,500 crore allocation is intended to bring significantly larger private and public investment into the sector. The Ministry of Coal serves as the nodal body overseeing project approvals, tendering, and capacity tracking.
India is the world's second-largest coal producer, and policymakers have long sought to maximise the value of domestic reserves beyond power generation. Gasification offers a pathway to produce industrial chemicals and cleaner fuels domestically, which could reduce the country's import bill and improve energy security simultaneously.
Stakeholders and Impact
The scheme directly benefits coal mining companies, fertiliser producers, and chemical manufacturers who invest in gasification infrastructure. Jindal Steel Limited and Talcher Fertilisers Limited — a joint-venture fertiliser project in Odisha — are among the anchor entities already in the implementation pipeline. Methanol and Synthetic Natural Gas produced through gasification can feed into transport fuels, city gas distribution networks, and agricultural inputs, broadening the downstream impact across multiple sectors. Reduced dependence on imported natural gas also carries macroeconomic benefits by easing pressure on the current account.
What's Next
The immediate focus will be on rolling out the new ₹37,500 crore scheme — including project approvals, tendering timelines, and commissioning milestones — all tracked by the Coal Ministry against the 2030 deadline. With only 22.6 MTPA of the 100 MT target currently operational or under implementation, the bulk of capacity addition must materialise over the next four years. The scale of the incentive package signals that the government intends to draw in large private-sector commitments to bridge that gap, and project-level announcements are likely to follow in the months ahead.
Point of View
500 crore top-up is the most significant single financial commitment to coal gasification in India's policy history, signalling a deliberate shift from treating coal purely as a power-sector input to positioning it as a feedstock for the chemicals and fuels economy. The move fits neatly into the Atmanirbhar Bharat arc — reducing import dependency on natural gas and methanol — while giving the coal sector a post-carbon narrative that extends its commercial relevance. With only 22.6 MTPA secured against a 100 MT target and four years left on the clock, the government is betting that a large incentive pool will unlock private capital at speed. Whether project execution can match the financial ambition will be the defining test of this mission.
NationPress
21 Jul 2026
Frequently Asked Questions
What is the National Coal Gasification Mission?
The National Coal Gasification Mission is a central government initiative to convert domestic coal and lignite into syngas, targeting 100 Million Tonnes of gasification capacity by 2030 to produce chemicals, methanol, and Synthetic Natural Gas.
How much has the government allocated for coal gasification incentives?
The government has approved total incentives of ₹46,000 crore — comprising an earlier ₹8,500 crore scheme and a newly approved ₹37,500 crore scheme — to promote coal and lignite gasification projects.
What is the current coal gasification capacity in India?
As of the minister's announcement on 21 July 2026, approximately 22.6 MTPA of capacity is operational or under implementation, including 8 MTPA by Jindal Steel Limited, 2.6 MTPA by Talcher Fertilisers Limited, and 12 MTPA across eight other approved projects.
What will coal gasification produce in India?
Coal gasification projects under the mission are aimed at producing coal-to-chemicals, methanol, and Synthetic Natural Gas, which can be used in transport fuels, industrial processes, and city gas networks, reducing dependence on imports.
Why is India investing in coal gasification?
India is the world's second-largest coal producer and seeks to use domestic reserves more efficiently. Gasification reduces import bills for natural gas, methanol, and petrochemicals while advancing energy security under the Atmanirbhar Bharat policy framework.
