India launches $3.9 billion incentive scheme for coal gasification
Time:Tue, 02 Jun 2026 09:37:14 +0800
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The Indian government approved a Rs 375 billion (US$3.9 billion) incentive package to accelerate coal and lignite gasification projects. This initiative aims to produce synthesis gas (syngas) to replace imported natural gas and naphtha in chemical sectors, mitigating Middle East supply disruptions. The state will provide financial assistance covering up to 20% of plant and machinery costs.
The government plans to gasify roughly 75 million tons of coal annually, mobilizing up to US$37 billion in total investments.
This strategy uses India's reserves of 401 billion tons of coal and 47 billion tons of lignite to manufacture urea, methanol, and ammonia domestically.
Seven major projects are currently under development by state-owned and private firms to support the national energy security goal.
