India Fast-Tracks Coal Gasification Projects

New Delhi India is accelerating coal gasification projects with a proposed outlay of Rs 46,000 crore to boost domestic production of fertilisers and gas and reduce dependence on imports, Coal and Mines Minister G Kishan Reddy said on Friday. Speaking at the ‘Agrasar Bharat Manch’ event in New Delhi, Reddy described coal as an important industrial raw material and said the government was expediting plans to convert it into products such as synthesis gas, ammonia, urea and methanol. Coal continues to meet around 55 per cent of India's primary energy needs and accounts for 74 per cent of electricity generation, highlighting its importance to the country's energy system. The government aims to encourage commercial-scale coal gasification projects in the coming years. The Union Cabinet has recently approved a scheme to promote surface coal gasification projects with a financial outlay of Rs 37,500 crore. The initiative is intended to accelerate the country's coal gasification programme and support the national target of gasifying 100 million tonnes of coal by 2030. The programme seeks to strengthen energy security and reduce reliance on imported liquefied natural gas (LNG), urea, ammonia and methanol. Greater domestic production of these commodities could support industries that depend on imported energy and chemical inputs. Reddy also highlighted the government's efforts to secure critical minerals through domestic production and overseas exploration. These minerals are essential for manufacturing electric vehicles, telecommunications equipment, solar power systems and defence hardware.

"We are currently exploring the mines of Argentina and simultaneously having discussions with other countries." - G Kishan Reddy (Union Coal and Mines Minister) "The government is also encouraging Indian entrepreneurs to go abroad for the purpose of exploration and processing of critical minerals." - G Kishan Reddy (Union Coal and Mines Minister)