Government committed to promoting coal gasification projects

New Delhi: The government on Friday said it is committed to promoting coal gasification projects which hold huge potential for converting coal into various valuable products. Coal gasification is a thermo-chemical process that converts coal into synthesis gas or 'syngas', primarily consisting of carbon monoxide and hydrogen.

With India importing approximately 83 per cent of its oil, over 90 per cent of methanol, and 13-15 per cent of 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 partial import substitution for oil and gas and cleaner utilisation of the country's abundant coal reserves, the coal ministry said in a statement.


To promote coal gasification, the government offers 50 per cent 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.

In 2020, Coal Gasification Mission was launched with an aim to gasify 100 million tonne of coal by 2030.