Govt Extending Rs 46,000 Crore Incentives For Coal Gasification: Reddy

New Delhi, Jun 22 (KNN) Union Minister for Coal and Mines G Kishan Reddy on Sunday said the government is prioritising energy security through a strategic push towards coal gasification, backed by substantial incentives aimed at reducing import dependence and strengthening industrial self-reliance.
 
Reddy said the government is extending incentives worth Rs 46,000 crore to promote coal gasification and bridge existing technological gaps in the sector.
 
Over 35 Companies Set to Begin Operations
 
The minister said more than 35 companies are expected to commence coal gasification activities in India within the next two months, reported PTI.
 
"We are encouraging the companies bringing technology to India to solve the technology gap for this purpose," the minister said.
 
Leveraging Domestic Coal Resources
 
Highlighting India's resource potential, Reddy noted that the country possesses the world's fifth-largest coal reserves and that nearly 73 percent of electricity generated by thermal power projects continues to be coal-based.
 
He said the government's focus is on maximising the value derived from domestic coal resources while reducing reliance on imported energy inputs.
 
Lakhanpur Project to Boost Import Substitution
 
Referring to a recent initiative in Odisha, the minister recalled that Prime Minister Narendra Modi had laid the foundation stone for the Rs 25,016 crore Lakhanpur coal gasification project in Jharsuguda.
 
According to Reddy, the project represents a major step towards strengthening India's energy security, promoting import substitution and enhancing industrial competitiveness.
 
He said the initiative aligns with the broader vision of building an Aatmanirbhar Bharat and achieving the goal of a developed India.
 
Critical Mineral Mission Gains Momentum
 
The minister also highlighted progress under the National Critical Mineral Mission, which seeks to secure access to strategic minerals through domestic exploration and overseas partnerships.
 
He said the mission, supported by significant investments, is aimed at ensuring the availability of critical resources required for emerging industries and clean energy technologies.
 
NLC-BARC Tie-Up for Rare Earth Exploration
 
As part of these efforts, Reddy noted that Neyveli Lignite Corporation (NLC) has signed a Memorandum of Understanding (MoU) with the Bhabha Atomic Research Centre (BARC) for rare earth exploration activities in Tamil Nadu.
 
He said the initiative reflects the government's commitment to strengthening mineral security while supporting inclusive and sustainable economic growth.
 
(KNN Bureau)