Loading…
The National Coal Gasification Mission targets 100 Million Tonnes (MT) of coal gasification capacity by 2030; about 22.6 MTPA is currently operational or under implementation — Jindal Steel Limited (~8 MTPA, operational), Talcher Fertilisers Limited (~2.6 MTPA) and 8 projects under the ₹8,500 crore Financial Incentive Scheme (~12 MTPA) — the Ministry of Coal told Rajya Sabha on 27 July 2026.
A new Scheme for Promotion of Surface Coal/Lignite Gasification Projects, approved on 13 May 2026 with a ₹37,500 crore outlay, is expected to utilise ~75 MTPA of coal, substantially closing the gap to the 100 MT target.
Support measures include capex incentives (15% under the older scheme, up to 20% under the new one), a 30-year coal linkage tenure, a 50% revenue-share rebate on coal used for gasification, and a reduced 2% auction floor price for underground coal gasification (UCG) blocks.
Enable cleaner, value-added utilisation of domestic coal — producing synthetic natural gas, chemicals, fertilisers and hydrogen — to reduce import dependence and strengthen energy security
Key: Sets the overarching 100 MT-by-2030 capacity target that the two financial-incentive schemes below are designed to meet
Approved 24.01.2024 to incentivise early coal gasification projects
Key: 8 projects approved; 15% capex incentive; JSL project has achieved financial closure and is under construction; five projects have completed ground-breaking
Approved 13.05.2026 to scale up gasification capacity closer to the 2030 target
Key: Up to 20% incentive on eligible Plant & Machinery cost; expected to utilise ~75 MTPA of coal
A separate Ministry of Petroleum & Natural Gas clean-fuel push — launched October 2018 with a target of 5,000 Compressed Biogas (CBG) plants producing 15 MMT/annum by 2023-24
Key: By October 2022, only 38 CBG plants (~225 MT/annum) had actually been commissioned — a useful contrast showing how ambitious clean-fuel capacity targets can lag well behind schedule, a risk coal gasification's 2030 target also faces
| Aspect | ₹8,500 crore Scheme (2024) | ₹37,500 crore Scheme (2026) |
|---|---|---|
| Approved on | 24 January 2024 | 13 May 2026 |
| Max capex/PM incentive | 15% of capex | Up to 20% of eligible Plant & Machinery cost |
| Projects/expected capacity | 8 projects, ~12 MTPA | ~75 MTPA expected |
During India's BRICS Chairmanship, the Ministry of Coal organised a BRICS Side Event on Clean Coal Technologies (24 June 2026), with a special focus on coal gasification, to exchange best practices with BRICS partners
A separate framework/guidelines exist for UCG (in-situ gasification without physical mining); pilot projects are exempted from certain requirements and get a reduced auction floor price (2%, down from 4%) — distinct from the surface gasification schemes that are the focus of this release
GS Paper 3 > Economy > Energy Security; Environment > Clean/Alternative Energy Technologies
Recurring — coal gasification targets have featured in Parliament replies across 2023-2026
In-situ conversion of unmined coal into syngas without physical extraction, distinct from surface gasification of already-mined coal