The Union Cabinet approved a major coal gasification package to strengthen domestic energy production, reduce import dependence, and accelerate India’s clean fuel transition targets.

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• The Union Cabinet approved a ₹37,500 crore package to promote coal gasification and strengthen India’s alternative energy and industrial fuel production capacity.
• India has set a national target of gasifying 100 million tonnes of coal annually by the year 2030 under its long-term energy strategy.
• Coal gasification converts coal into synthetic gas which can be used for producing fertilisers, methanol, ammonia, synthetic natural gas, and industrial chemicals.
• The initiative aims to reduce India’s heavy import dependence on products such as methanol, ammonia, and fertiliser feedstock materials.
• Synthetic gas produced through coal gasification can support domestic manufacturing and improve energy security across critical industrial sectors.
• The approved package focuses on promoting surface coal gasification projects using advanced and comparatively cleaner conversion technologies.
• Union Minister Ashwini Vaishnaw announced the Cabinet decision during a media briefing held at the National Media Centre in New Delhi.
• The coal gasification mission is expected to strengthen industrial growth, encourage investment, and support India’s broader energy transition objectives.