India's Coal Gasification Initiative Stalled Amid Global Energy Crisis
Six years on, India's coal gasification yet to take off in missed opportunity amid West Asia crisis
Hindustan TimesImage: Hindustan Times
India's ambitious coal gasification mission, launched in 2020 to gasify 100 million tonnes of coal by 2030, has seen minimal progress, with significant budget allocations remaining unspent. This stagnation is concerning as the ongoing energy crisis due to the West Asia conflict highlights India's heavy reliance on energy imports.
- 01India aims to gasify 100 million tonnes of coal by 2030 but has made little progress.
- 02The budget for coal gasification increased to ₹3,525 crore (approximately $425 million USD) for 2026-27, yet previous allocations went largely unspent.
- 03Coal gasification could help reduce India's dependence on energy imports, particularly during the current global energy crisis.
- 04Coal India Ltd signed agreements for coal gasification projects, but delays in approvals have hindered progress.
- 05The government has approved several major projects related to coal gasification, with some ground-breaking ceremonies recently held.
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India's coal gasification mission, initiated in 2020 with the goal of converting 100 million tonnes of coal into synthesis gas by 2030, has faced significant challenges, including budgetary delays and unspent allocations. The budget for the mission was dramatically increased from ₹300 crore (about $36 million USD) in 2025-26 to ₹3,525 crore (approximately $425 million USD) for 2026-27, yet almost all of the previous year's funds remained unused. This stagnation is particularly concerning amid the ongoing energy crisis stemming from the conflict in West Asia, which has disrupted energy supplies globally. India, as the world's third-largest crude oil importer, is looking to reduce its reliance on imports through initiatives like coal gasification. Despite signing memoranda of understanding with state-owned companies for projects in West Bengal and Odisha, progress has been slow due to delays in government approvals. However, recent announcements indicate that the government is moving forward with several coal gasification projects, aiming to utilize India's substantial coal reserves, estimated at 401 billion tonnes. Union Coal Minister G Kishan Reddy emphasized the importance of this initiative for cleaner energy solutions and import substitution.
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The slow progress of the coal gasification initiative could hinder India's energy independence and increase vulnerability to global energy supply disruptions.
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