**Executive Summary**
At the Bharat Electricity Summit 2026, Union Minister G. Kishan Reddy underscored coal gasification as a strategic priority for India’s energy security and industrial growth. The document outlines the National Coal Gasification Mission's target to process 100 million tonnes of coal by 2030 to reduce import dependence. Key financial provisions include an ₹8,500 crore incentive framework to support public and private sector projects amid projected rising coal demand through 2047.
**Key Points / Main Content**
**India’s Coal Landscape and Energy Security**
* India possesses nearly 400 billion tonnes of coal reserves, ranking among the largest globally.
* Coal currently accounts for 55% of the national energy mix and 74% of electricity generation.
* Annual coal demand is approximately one billion tonnes and is projected to increase significantly by 2047.
* The government remains committed to achieving Net Zero emissions by 2070 through a balanced energy approach.
**Strategic Benefits of Coal Gasification**
* Transformative technology converts coal into syngas, used to produce cleaner fuels, chemicals, fertilizers, and hydrogen.
* Gasification aims to reduce reliance on imports, which currently stand at 83% for crude oil, 50% for natural gas, and over 90% for methanol and fertilizers.
* Advanced methods like Underground Coal Gasification (UCG) are being promoted to access previously unreachable reserves and minimize environmental impact.
**National Mission and Financial Incentives**
* The National Coal Gasification Mission has set a production target of 100 million tonnes by 2030.
* An incentive framework of ₹8,500 crore is available to support both public and private sector initiatives.
* Current investment pipelines for large-scale gasification projects already exceed ₹64,000 crore.
**Impact Analysis**
**Public and Private Sector Industry**
**Impact**
Industries gain access to an ₹8,500 crore incentive pool and a streamlined policy environment for large-scale projects.
**Action Required**
Engage in early participation and investment in the ₹64,000 crore project pipeline to enhance domestic production of fuels and chemicals.
**Research Institutions, Academia, and Start-ups**
**Impact**
Increased demand for indigenous technology development and innovation in clean coal and Underground Coal Gasification.
**Action Required**
Collaborate within a multi-sector ecosystem to drive technical innovation across the power, oil and gas, and fertilizer sectors.
**Government and Policymakers**
**Impact**
Responsible for balancing rapid economic expansion with sustainability goals and reducing strategic import dependencies.
**Action Required**
Maintain the commitment to streamlined approvals and supportive policies to foster a collaborative ecosystem for energy self-reliance.
Key Entities Referenced
National Coal Gasification Mission: A government initiative aiming to gasify 100 million tonnes of coal by 2030, supported by an ₹8,500 crore incentive framework for public and private projects.
Ministry of Coal: The primary ministry responsible for managing India's coal reserves and overseeing the transition to cleaner energy technologies like gasification.
G. Kishan Reddy: The Union Minister for Coal and Mines who highlighted the strategic role of coal gasification in strengthening India’s energy security and industrial growth.
Underground Coal Gasification (UCG): An advanced technology promoted for its potential to tap previously inaccessible coal reserves while reducing the environmental impact of energy production.
Ministry of Coal
Coal Gasification Key to India’s Energy Security
and Industrial Growth: Union Minister G.Kishan
Reddy
Posted On: 22 MAR 2026 8:29PM by PIB Delhi
Union Minister for Coal and Mines, G. Kishan Reddy, today highlighted that coal gasification will be
pivotal in strengthening India’s energy security, reducing import dependence, and supporting industrial
growth, while addressing the Bharat Electricity Summit 2026.
Addressing industry leaders, experts, start-ups, researchers, students, and policymakers, the Minister said
India’s rapidly expanding economy requires a balanced energy approach that aligns development with
sustainability. He noted that under the leadership of Prime Minister Narendra Modi, the country is
experiencing strong growth across manufacturing, infrastructure, digital connectivity, and innovation.
The Minister underlined India’s robust coal reserves, estimating nearly 400 billion tonnes—among the
largest globally—where coal accounts for about 55% of the energy mix and nearly 74% of electricity
generation. With annual coal demand currently around one billion tonnes and expected to rise significantly
by 2047, he emphasized the continued importance of coal. Even as India remains committed to achieving
Net Zero emissions by 2070.Describing coal gasification as a key transformative technology, he explained that it converts coal into
syngas, which can be further used to produce cleaner fuels, chemicals, fertilizers, and hydrogen. This
approach enables more efficient and sustainable use of domestic resources while enhancing economic
resilience. He also pointed out India’s dependence on imports—approximately 83% of crude oil, 50% of
natural gas, and over 90% of methanol and fertilizers—making energy security a strategic priority.
To promote adoption, the Government has launched the National Coal Gasification Mission with a target
of 100 million tonnes of gasification by 2030. An incentive framework of ₹8,500 crore has been
introduced to support public and private sector projects, with several large-scale initiatives already
underway and investments exceeding ₹64,000 crore in the pipeline. Advanced technologies such as
Underground Coal Gasification (UCG) were also highlighted for their potential to tap previously
inaccessible reserves while reducing environmental impact.The Minister called for a collaborative ecosystem involving industry, academia, start-ups, and research
institutions, noting that coal gasification spans multiple sectors including power, oil & gas, and fertilizers.
He reaffirmed the Government’s commitment to streamlined approvals, supportive policies, and incentives
to encourage early participation and investment.
He expressed confidence that with innovation, indigenous technology development, and coordinated
efforts, India can emerge as a global leader in clean coal technologies while advancing energy security,
sustainability, and self-reliance.
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Shuhaib T/ Prajith Kumar
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