India Cabinet Approves Coal Gasification Scheme
Analysis based on 6 articles · First reported May 03, 2026 · Last updated May 04, 2026
The approval of this significant incentive scheme by the India — Union Council of Ministers is expected to positively impact the energy and chemical sectors in India, reducing import dependence and fostering domestic production. This move could lead to increased investment in coal gasification projects and related industries, strengthening India's energy security.
The India — Union Council of Ministers is expected to approve a Rs 37,500 crore incentive scheme to promote coal gasification projects across India. This initiative, spearheaded by the India — Ministry of Coal, aims to boost cleaner energy production, reduce India's reliance on imports of critical commodities like LNG, urea, and methanol, and enhance the utilization of domestic coal and lignite resources. The scheme supports India's national target of achieving 100 million tonnes of coal gasification capacity by 2030. This renewed push for coal gasification follows recent tensions in West Asia, which exposed India's vulnerability to disruptions in hydrocarbon supplies, underscoring the need for diversified energy sources and strengthened energy security.
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