India's vast coal reserves, estimated at 378 billion tonnes of which about 199 billion tonnes are classified as 'proven', present significant opportunities for energy generation. Currently, about 80% of India's coal is used in thermal power plants. As the country adopts clean energy solutions and renewable sources are promoted, the Ministry of Coal is actively ensuring sustainable use of coal. In 2020, the Coal Gasification Mission was launched, which aims to gasify 100 million tonnes of coal by 2030, thereby maximizing the value and utility of this vital resource.
Coal gasification is a thermochemical process that converts coal into synthesis gas or “syngas”, which consists mainly of carbon monoxide and hydrogen. India imports about 83% of its oil, over 90% of methanol and 13-15% of ammonia, so coal gasification offers an opportunity to reduce import dependence and save foreign exchange, especially in the oil, gas, fertilizer and petrochemical sectors. Gasification projects will promote diversified uses, ensuring partial import substitution of oil and gas and cleaner use of India’s abundant coal reserves.
The Ministry of Coal has also launched India's first pilot project for Underground Coal Gasification (UCG) in Kasta Coal Block, Jharkhand. This pilot initiative is a major milestone for Coal India Limited (CIL) and its subsidiaries, placing India at the forefront of adopting cutting-edge underground coal gasification technologies.
The Ministry of Coal has invited applications from Government PSUs and private sector entities for coal/lignite gasification projects in all categories that will harness economic potential, enhance revenue and create new employment opportunities. The last date for submission of bids is November 11, 2024.
Coal gasification is emerging as a highly promising initiative, receiving an encouraging response from various sectors. The project is not only showing a positive outlook for converting coal into valuable products but is also generating interest among investors. With the potential to create large scale employment opportunities and boost economic growth, coal gasification is set to revolutionise the industry, paving the way for a sustainable and prosperous future in energy security.
The Ministry of Coal is committed to promote coal gasification projects which have immense potential to convert coal into various valuable products. The scheme and its incentives are designed to attract Government, Public Sector Undertakings and the private sector, thereby promoting innovation, investment and sustainable growth in the coal sector. The Coal/Lignite Gasification Scheme is a key point in our effort to transform the coal sector by adopting clean coal technologies and the Government is committed to ensure the success of coal gasification projects.
