Government Invites Proposals for Coal Gasification Projects to Boost Clean Energy and Industrial Growth
The Government of India has invited proposals for new coal gasification projects as part of its strategy to promote cleaner coal utilisation, enhance energy security and reduce dependence on imported fuels. The initiative is aimed at accelerating the adoption of advanced coal conversion technologies while supporting the country’s long-term industrial and energy goals.
Coal gasification is a process that converts coal into synthesis gas (syngas), a mixture of hydrogen, carbon monoxide and other gases. This syngas can be used to produce chemicals, fertilizers, methanol, synthetic natural gas (SNG) and hydrogen, offering a more efficient and environmentally sustainable alternative to conventional coal combustion.
The latest call for proposals is expected to encourage participation from public sector enterprises, private companies and joint ventures interested in developing commercial-scale coal gasification plants. The government has been promoting coal gasification through financial incentives and policy support to unlock greater value from India’s abundant coal reserves.
India has set an ambitious target of significantly increasing coal gasification capacity in the coming years as part of its broader vision to diversify coal usage beyond power generation. The initiative is also expected to create new investment opportunities, generate employment and strengthen domestic manufacturing across sectors such as petrochemicals, steel and fertilizers.
Officials believe that expanding coal gasification will help reduce imports of natural gas, methanol and other industrial feedstocks, thereby improving the country’s trade balance and enhancing energy resilience. The technology is also seen as a key enabler for producing cleaner fuels and supporting India’s transition towards a lower-carbon economy when combined with carbon capture and other advanced technologies.
Industry stakeholders have welcomed the invitation for proposals, stating that supportive policies, infrastructure development and continued technological innovation will be essential to making coal gasification commercially viable at scale. The initiative is expected to play an important role in strengthening India’s energy ecosystem while promoting sustainable industrial growth.