Politics · India Bureau
Coal gasification projects could save India ₹1.5 trillion in forex costs
India's coal gasification initiative could deliver substantial foreign exchange savings through import substitution over the next five to seven years, according to senior government officials. The Centre has allocated ₹46,000 crore in financial incentives to accelerate project development.
LSN India ·
Coal gasification projects present a significant opportunity for India to reduce foreign exchange outflows by approximately ₹1.5 lakh crore within five to seven years, Coal Ministry Secretary Vikram Dev Dutt said Thursday while addressing the 4th Conference of Mining Ministers on Reforms in the Mines and Coal Sector in South Goa.
The technology converts coal into synthetic gas, or syngas, which can be processed into numerous products that India currently imports in substantial volumes. By scaling up domestic gasification capacity, the country could substantially reduce its dependence on foreign supplies of these materials, Dutt explained.
The Centre has committed ₹46,000 crore in financial incentives across two dedicated schemes to encourage private and public sector investment in coal gasification projects. These measures form part of broader efforts to maximize value addition from India's domestic coal reserves while strengthening energy security.
Dutt emphasised that responsible mining practices should guide the sector's expansion. "Mining with a conscience" should remain the foundational principle for operators as the industry pursues growth and modernisation, he said. Success in scaling gasification technology could position India as a more self-reliant economy while creating new industrial opportunities.