Context: Coal Gasification
The Union Cabinet approved a ₹37,500 crore package to promote coal gasification and reduce import dependence on fuels, fertilisers, and chemicals.
Coal Gasification
- Coal converted into Syngas (Synthetic Gas) using oxygen/steam.
- Syngas mainly contains Carbon Monoxide (CO) + Hydrogen (H₂).
Uses
- Urea
- Ethanol
- Ammonia
- Synthetic Natural Gas (SNG)
- Dimethyl Ether (DME)
- Hydrogen
- Industrial fuel
Why Important?
- Reduces imports of Liquefied Natural Gas (LNG), urea, methanol, ammonia, coking coal etc.
- Import bill of such products: ~₹2.77 lakh crore (FY2025)
Improves:
- Energy security
- Fertiliser security
- Forex savings
Scheme Highlights
- Total package: ₹37,500 crore
- Target: 75 Million Tonnes (MT) coal/lignite gasification
- National target: 100 MT by 2030
Incentive
- Up to 15–20% of project cost
- ₹5,000 crore/project
- ₹9,000 crore for SNG/urea projects
- ₹12,000 crore/entity cap
