Union Coal and Mines Minister G. Kishan Reddy on Thursday, June 11, 2026, urged industry partners to treat coal gasification as a major business, technology and nation-building opportunity, affirming that Hyderabad is the 'ground zero' of India's coal gasification journey.

Context

Addressing industry stakeholders, the Minister called on participants to engage with the coal gasification mission 'with confidence, ambition and a long-term vision.' He underlined that the initiative is not merely a policy directive but a convergence of economic, technological and strategic imperatives for the country.

Kishan Reddy also disclosed that a Draft Request for Proposal (RFP) on coal gasification has been placed in the public domain, and that the Ministry of Coal is actively soliciting suggestions from stakeholders to 'strengthen and refine the framework.' This consultation phase signals that the policy architecture is still being shaped with industry input.

Policy Backdrop

India's coal gasification push traces back to 2020, when the government set an ambitious target of gasifying 100 million tonnes of coal by 2030 to reduce dependence on imported oil, gas and petrochemicals. The programme sits within the broader Atmanirbhar Bharat framework, which aims to substitute imports with domestically produced syngas, fertilisers and chemicals derived from coal.

The approach is designed to pair continued coal utilisation — India's most abundant fossil fuel — with technology upgrades intended to lower emissions intensity per unit of output. By converting coal into syngas rather than burning it directly, the process opens downstream value chains in chemicals and fertiliser manufacturing that the government views as strategic industries.

Hyderabad's Role

Hyderabad, the capital of Telangana, has been explicitly positioned by the Minister as the anchor city for this transformation. The city hosts institutions such as the Indian Institute of Chemical Technology (IICT), alongside a dense cluster of technology enterprises and advanced manufacturing units that collectively form an ecosystem suited to early-stage demonstration projects and supply-chain development.

Kishan Reddy, who also serves as BJP Telangana state president, described the city as 'uniquely positioned to lead this transformational initiative,' pointing to its research institutions, technology enterprises and manufacturing capabilities as competitive advantages. The framing reinforces Hyderabad's emerging identity as a hub for deep-tech and industrial innovation beyond its established pharmaceutical and IT sectors.

Stakeholders and Impact

Energy companies, chemical manufacturers and research institutions stand to benefit most directly from the gasification mission. A finalised RFP would open competitive bidding for pilot and commercial-scale projects, potentially unlocking significant capital investment in gasification plants, syngas pipelines and downstream processing facilities.

The stakeholder consultation currently under way could shape provisions around technology mandates, feedstock pricing, off-take guarantees and viability-gap funding — terms that will determine the commercial attractiveness of projects for private investors.

What's Next

The immediate milestone is the finalisation of the RFP after the current public consultation closes, followed by the selection of pilot projects. Observers will also watch for any fiscal incentives or viability-gap support that may be announced in upcoming Coal Ministry reviews or Union Budget deliberations. The pace at which demonstration projects move from proposal to ground-breaking will be the clearest indicator of whether the 2030 gasification target of 100 million tonnes remains on track.