Government Clears ₹37,500 Crore Incentive Plan for Coal and Lignite Gasification.

The Union Cabinet recently approved a policy aimed at reducing India’s import dependence on natural gas by promoting the extraction of gas from coal and lignite through gasification projects. The scheme is expected to begin delivering gas within the next four to five years.

Prime Minister Narendra Modi said in a social media post that the initiative to promote surface coal and lignite gasification will strengthen energy security, boost investment and create employment opportunities. He also said the programme would reinforce India’s efforts to advance its technology and innovation ecosystem.

Coal gasification is a process that converts dry fuel into synthetic gas (syngas), which can be used as an alternative fuel. It is also used in the production of methanol, fertilisers, hydrogen and chemicals, helping reduce dependence on imports while supporting lower carbon emissions.