Kishan Reddy Announces ₹46,000 Crore Coal Gasification Initiative to Propel Industrial Expansion and Self-Reliant India

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Union Coal Minister G Kishan Reddy announced on Thursday that the Union Cabinet’s recent endorsement of the ₹46,000 crore combined initiative for the Promotion of Surface Coal/Lignite Gasification Projects signifies a pivotal advancement in the nation’s energy and industrial landscape.

He stated that this will inject new momentum into extensive gasification initiatives throughout the country.

While addressing a roadshow on Coal/Lignite Gasification Projects, he expressed optimism about India’s potential to become one of the leading destinations for coal gasification investment globally.
“With abundant coal resources, robust policy support, and unwavering commitment, coal gasification will emerge as a new engine for industrial growth and Atmanirbhar Bharat,” he declared.

The Centre is dedicated to advancing reforms in the sector, prioritizing ease of doing business and fostering a conducive ecosystem for investors and technology providers, he added.

He remarked that, despite its rich coal reserves, India continues to rely heavily on imports for methanol, ammonia, fertilizer feedstocks, and various essential industrial chemicals, leading to significant foreign exchange outflows each year.

Coal gasification presents a strategic route to transform domestic coal into value-added products, bolster energy security, diminish import reliance, and enhance economic resilience.

To facilitate a transparent and consultative implementation process, he informed stakeholders that the Draft Request for Proposal (RFP) has been made publicly available for comments and suggestions, inviting industry stakeholders to provide their valuable input to strengthen the framework.

He emphasized India’s robust resource base and escalating energy demands, noting that the nation harbors nearly 400 billion tonnes of coal reserves, the fifth largest globally, which are sufficiently available for decades to come.

He further stated that India currently ranks as the world’s second-largest producer and consumer of coal, with nearly 70% of electricity generation reliant on coal, supporting millions of livelihoods in the sector.

Vikram Dev Dutt, Secretary of the Union Ministry of Coal, informed stakeholders that, as promised during the New Delhi Roadshow, the Draft Request for Proposal (RFP) has been opened for industry feedback.

He noted that the roadshow aimed to clearly outline the scheme and the RFP while addressing the questions, concerns, and suggestions from stakeholders.

Encouraging active involvement from industry, technology providers, and financial institutions, he called for contributions to shape the final framework.

Highlighting the increasing importance of self-sufficiency in a changing geopolitical context, Dutt remarked that recent events in West Asia have underscored the necessity to develop resilient domestic supply chains and minimize import dependence.

He reiterated that the Union Cabinet has approved the scheme, and the combined support of the central government, state incentives, assured coal linkage, and downstream infrastructure forms a compelling investment landscape.

A detailed presentation on the Draft Request for Proposal (RFP) under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects was also delivered during the roadshow.

This presentation covered essential aspects of the scheme, such as eligibility criteria, bidding methodology, incentive structure, coal linkage provisions, project milestones, evaluation parameters, and participation timelines.

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Furthermore, BHEL and CIMFR presented indigenous coal gasification technologies, reinforcing India’s commitment to technological self-reliance, as stated in an official release.

The roadshow included an interactive session and Q&A, where stakeholders sought clarifications regarding project financing, technology partnerships, coal availability, regulatory approvals, environmental clearances, infrastructure needs, and downstream opportunities.

This event brought together industry leaders, technology providers, investors, financial institutions, coal and lignite companies, industry associations, and representatives from Central and State Governments.

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