Scheme for Promotion of Surface Coal/Lignite Gasification Projects

On 13th May 2026, the Union Cabinet approved a Scheme for Promotion of Surface Coal/Lignite Gasification Projects.

Why is there a need for such a scheme?

Abundant Coal Reserves

  • India has around 401 billion tonnes of coal reserves and 47 billion tonnes of lignite reserves.
  • Coal contributes over 55% to the country’s energy mix.

Importance of Coal Gasification

  • Coal gasification converts coal into syngas, which can be used to produce fuels, fertilisers, and chemicals domestically, reducing import dependence.

Reducing Import Vulnerability

  • India’s import bill for LNG, urea, ammonia, methanol, coking coal, and related products reached nearly Rs. 2.77 lakh ....
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