India approves coal gasification scheme
Analysis based on 21 articles · First reported May 03, 2026 · Last updated May 13, 2026
The approval of the coal gasification scheme by India is expected to significantly impact the energy and chemical markets by reducing the country's reliance on imported LNG, urea, ammonia, and methanol. This move will likely stabilize domestic prices for these commodities and foster growth in related industries within India, attracting substantial investments and creating jobs.
The Union Cabinet of India, chaired by Narendra Modi, approved a Rs 37,500 crore incentive scheme for surface coal and lignite gasification projects. This initiative aims to gasify 75 million tonnes of coal by 2030, strengthen India's energy security, and reduce dependence on imported fuels and chemicals like LNG, urea, ammonia, and methanol. Union Minister Ashwini Vaishnaw announced that the scheme will provide financial incentives of up to 20 percent of plant and machinery costs, capped at Rs 5,000 crore per project, and is expected to attract investments of Rs 2.5 lakh crore to Rs 3 lakh crore, creating approximately 50,000 direct and indirect jobs. Additionally, India extended coal linkage tenure up to 30 years for coal gasification projects to provide long-term policy certainty for investors. This program builds on previous initiatives and is strategically important given global supply chain vulnerabilities and price fluctuations.
Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.
Open Dashboard