Union Minister for Coal and Mines G Kishan Reddy has indicated that the government is considering providing incentives to promote coal gasification projects, as part of a broader push to modernize the coal sector and transition toward cleaner energy solutions.
Speaking on the future roadmap of the coal industry, the minister highlighted that coal gasification holds significant potential in reducing carbon emissions while enhancing the value derived from domestic coal resources. The process converts coal into syngas, which can be used to produce chemicals, fertilizers, and synthetic fuels.
Reddy emphasized that financial incentives and policy support could play a crucial role in encouraging private sector participation and accelerating investments in coal gasification technologies. He noted that the government is actively working on frameworks that would make such projects commercially viable.
The Ministry of Coal has already set ambitious targets for coal gasification, aiming to achieve 100 million tonnes of coal gasification by 2030. Officials believe that achieving this target would help reduce dependence on imported natural gas and other feedstocks, while also supporting India’s energy security goals.
Industry stakeholders have welcomed the move, stating that incentives such as viability gap funding, tax benefits, and easier access to financing could significantly improve project feasibility. However, experts have also pointed out the need for robust infrastructure and technological advancements to ensure efficient implementation.
The minister reiterated that coal will continue to play a vital role in India’s energy mix, but stressed the importance of adopting cleaner technologies to align with environmental commitments and sustainable development goals.