Delhi: India’s vast coal reserves, estimated at 378 billion tonnes with about 199 billion tonnes classified as 'proven', present significant opportunities for energy production. Around 80% of India's coal is utilized in thermal power plants.
As the country embraces cleaner energy solutions and renewable sources gain momentum, the Ministry of Coal is proactively ensuring the sustainable use of coal.
In 2020, the Coal Gasification Mission was launched, aiming to gasify 100 million tonnes of coal by 2030, thereby maximizing the value and utility of this vital resource.This initiative supports the goal of achieving energy independence by 2027.
Coal gasification is a thermo-chemical process that convert coal into synthesis gas or "syngas", primarily consisting of carbon monoxide and hydrogen.
With India importing approximately 83% of its oil, over 90% of its methanol, and 13-15% of its ammonia, coal gasification offers an opportunity to reduce reliance on imports and conserve foreign exchange, especially in the oil, gas, fertilizer, and petrochemical sectors.
The gasification projects will lead to diversified use of coal partial import substitution for oil and gas and cleaner utilization of India’s abundant coal reserves.
On January 24, 2024, the Cabinet Committee on Economic Affairs approved equity investments by Coal India Limited (CIL) to form joint venture companies with BHEL and GAIL, pushing beyond a 30% equity limit.
This scheme aims to demonstrate the financial and technical viability of gasification projects, stimulate markets for downstream products, and establish new economic value chains.
Furthermore, to promote coal gasification, the Ministry offers a 50% rebate in revenue share in commercial auction policies for gasification coal, established a new sub-sector for syngas production, and provides long-term coal allotments to gasification plants.