India Achieves 22.6 MTPA Coal Gasification Capacity, Targets 100 MT by 2030: MoS

New Delhi, Jul 28 (KNN) India has developed 22.6 million tonnes per annum (MTPA) of coal gasification capacity that is either operational or under implementation, as part of the National Coal Gasification Mission, which aims to achieve 100 million tonnes (MT) of coal gasification capacity by 2030, the government informed Parliament.

The information was provided by Union Minister of State for Coal and Mines  Satish Chandra Dubey in a written reply to a question in the Rajya Sabha.

The Minister said the existing capacity comprises 8 MTPA at Jindal Steel Limited (JSL), 2.6 MTPA at Talcher Fertilisers Limited (TFL), and around 12 MTPA across eight projects approved under the Rs 8,500 crore Scheme for Promotion of Coal/Lignite Gasification.

He added that eight coal gasification projects have been approved under the Rs 8,500 crore scheme approved in January 2024. Of these, the Jindal Steel project has achieved financial closure and is under construction, while five projects have completed groundbreaking and are at various stages of obtaining statutory clearances and implementation.

The reply further stated that the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, approved on May 13, 2026, has a financial outlay of Rs 37,500 crore and is expected to utilise around 75 MTPA of coal, contributing significantly towards the 100 MT target.

According to the Minister, the government is supporting coal gasification projects through financial incentives, coal linkage and policy measures.

These include incentives of 15percent of capital expenditure under the Rs 8,500 crore scheme and up to 20percent of the eligible cost of plant and machinery under the Rs 37,500 crore scheme, a dedicated coal linkage mechanism for syngas production, extension of coal linkage tenure to 30 years, and policy support for underground coal gasification, including revenue-share rebates and concessions in auction terms.

The Minister also informed that the Ministry of Coal organised a BRICS Side Event on Clean Coal Technologies on June 24, 2026, focusing on coal gasification to facilitate knowledge sharing among BRICS countries.

He added that once projects under the Rs 8,500 crore scheme, the Rs 37,500 crore scheme and Talcher Fertilisers Limited are commissioned, coal and lignite gasification is expected to result in import substitution worth around Rs 1.5 lakh crore annually

(KNN Bureau)