**Executive Summary**
The Ministry of Coal concluded a major roadshow in Hyderabad on June 11, 2026, to promote the ₹46,000 crore "Scheme for Promotion of Surface Coal/Lignite Gasification Projects." The event aimed to accelerate the transition toward cleaner coal utilization and reduce India's reliance on imported chemicals and fertilizers. Key action items include the invitation for industry feedback on the Draft Request for Proposal (RFP), which is currently available in the public domain.
**Key Points / Main Content**
**Strategic Objectives and National Vision**
* India aims to leverage its 400 billion tonnes of coal reserves (the world's 5th largest) to achieve energy security and "Atmanirbhar Bharat" (self-reliance).
* The initiative targets the domestic production of methanol, ammonia, and essential industrial chemicals to reduce significant foreign exchange outflows.
* Coal gasification is identified as a strategic pillar for the goal of building a "Viksit Bharat" by 2047.
**Policy and Financial Framework**
* The Union Cabinet has approved a combined scheme totaling ₹46,000 crore (including a ₹37,500 crore component) to incentivize gasification projects.
* The government is offering a supportive ecosystem characterized by Central support, State-level incentives, and assured coal linkage.
* A Draft Request for Proposal (RFP) has been released for public consultation to ensure a transparent, consultative, and investor-oriented implementation process.
**Technological and Regional Participation**
* Indigenous coal gasification technologies were showcased by BHEL and CIMFR to promote technological self-reliance.
* Maharashtra highlighted policy incentives for cluster-based development, while Chhattisgarh and Telangana presented specific regional investment opportunities.
* The roadshow detailed project milestones, bidding methodologies, eligibility criteria, and participation timelines for potential stakeholders.
**Impact Analysis**
**Industry Leaders and Investors**
**Impact**
They are presented with a transformational opportunity to enter a high-value sector backed by significant government subsidies and a structured investment ecosystem.
**Action Required**
Review the Draft RFP currently in the public domain and submit comments, suggestions, and technical inputs to shape the final framework.
**Technology Providers**
**Impact**
Increased demand for advanced and indigenous gasification technologies, fostering opportunities for technology partnerships and local innovation.
**Action Required**
Collaborate with the national mission and coal companies to implement scalable and sustainable gasification solutions.
**Financial Institutions**
**Impact**
The scheme creates a new category of large-scale industrial projects requiring project financing and long-term capital investment.
**Action Required**
Engage in the consultative process to address concerns regarding project financing and risk mitigation within the emerging sector.
**State Governments**
**Impact**
States such as Maharashtra, Chhattisgarh, and Telangana stand to gain through industrial growth, large-scale employment generation, and increased economic activity.
**Action Required**
Develop and present attractive regional policy incentives and infrastructure support to secure project placements within their jurisdictions.
Key Entities Referenced
Scheme for Promotion of Surface Coal/Lignite Gasification Projects: A ₹46,000 crore government initiative designed to accelerate coal gasification, reduce import dependence on chemicals, and promote cleaner utilization of coal resources.
Ministry of Coal: The primary central ministry responsible for the implementation of the coal gasification programme and the oversight of the country's coal and lignite resources.
Draft Request for Proposal (RFP): A key policy document released for public and industry feedback to establish the bidding methodology, eligibility criteria, and incentive structures for the gasification scheme.
Shri G. Kishan Reddy: Union Minister of Coal and Mines who leads the strategic vision for transitioning India's coal sector toward value-added gasification projects.
Maharashtra, Chhattisgarh, and Telangana: Key states central to the policy's implementation, offering specific policy incentives and investment opportunities for regional gasification clusters.
Ministry of Coal
Ministry of Coal Holds Successful Roadshow on
Coal and Lignite Gasification Projects in
Hyderabad
प्रव तथ: 11 JUN 2026 9:21PM by PIB Delhi
The Ministry of Coal today successfully concluded a major Roadshow on Coal and Lignite Gasification
Projects in Hyderabad, bringing together industry leaders, technology providers, investors, financial
institutions, coal and lignite companies, industry associations, and representatives from Central and State
Governments. The event served as an important platform to showcase the Government of India's vision for
accelerating coal gasification and promoting cleaner, value-added utilization of the country's abundant
coal resources. The Roadshow witnessed extensive deliberations on investment opportunities, policy
support mechanisms, technological advancements, implementation strategies, and avenues for fostering a
robust coal gasification ecosystem in the country.
The event was graced by Shri G. Kishan Reddy, Union Minister of Coal and Mines, as the Chief Guest
and Shri Satish Chandra Dubey, Minister of State for Coal and Mines, as the Guest of Honour. Shri
Vikram Dev Dutt, Secretary, Ministry of Coal, Shri Sanoj Kumar Jha, Additional Secretary, Ministry of
Coal, and senior officials of the Ministry were also present on the occasion.In his keynote address at the Roadshow on Coal/Lignite Gasification Projects in Hyderabad, Shri G.
Kishan Reddy, Union Minister of Coal and Mines, highlighted India's strong resource base and growing
energy needs, noting that the country possesses nearly 400 billion tonnes of coal reserves the fifth largest
in the world with sufficient availability for several decades. He stated that India is today the world's
second-largest producer and consumer of coal, with nearly 70% of its electricity generation dependent on
coal and millions of livelihoods linked to the sector. Emphasizing the need for smarter utilization of this
abundant resource, he described coal gasification as a transformational opportunity for India's energy and
industrial future.
Shri Reddy noted that despite its vast coal reserves, India continues to remain heavily dependent on
imports of methanol, ammonia, fertilizer feedstocks and several critical industrial chemicals, resulting in a
substantial outflow of foreign exchange every year. He stated that coal gasification offers a strategic
pathway to convert domestic coal into value-added products, strengthen energy security, reduce import
dependence and enhance economic resilience. To ensure a transparent and consultative implementation
process, he informed stakeholders that the Draft Request for Proposal (RFP) has already been placed in
the public domain for comments and suggestions, and invited industry stakeholders to contribute their
valuable inputs for further strengthening the framework.
The Minister highlighted that the Union Cabinet's approval of the total ₹46,000 crore combined Scheme
for Promotion of Surface Coal/Lignite Gasification Projects marks a transformational step in India's
energy and industrial journey and will provide fresh momentum to large-scale gasification projects across
the country. He stated that the Government is committed to driving reforms in the sector, with ease of
doing business as a key priority, and creating a supportive ecosystem for investors and technology
providers. Further, he reiterated the Government's unwavering commitment to transparency and
accountability, stating that a consultative, industry-friendly and investor-oriented approach would remain
central to the successful implementation of the coal gasification programme. Expressing confidence in
India's emergence as one of the world's most promising destinations for coal gasification investments, he
remarked that the country is ready to enter the coal gasification era. “We have coal in abundance, we have
policy support, and we have commitment. Coal gasification will become a new driver of industrial growth
and Atmanirbhar Bharat,” he said.Addressing the Roadshow, Shri Satish Chandra Dubey, Minister of State for Coal and Mines, underscored
the strategic importance of coal gasification in realizing the vision of a self-reliant and developed India.
He stated that a nation capable of producing its own fuels, fertilizers, chemicals, and other critical
industrial inputs from domestic resources is better equipped to ensure long-term energy security, reduce
dependence on imports, and strengthen its economic resilience.
Shri Dubey highlighted that the ₹37,500 crore Scheme for Promotion of Surface Coal and Lignite
Gasification Projects reflects the Government’s strong commitment to harnessing India’s abundant coal
resources in a more efficient, sustainable, and value-added manner. He noted that the initiative is a
significant step towards advancing the vision of Atmanirbhar Bharat under the leadership of Prime
Minister Shri Narendra Modi. Expressing confidence in the transformative potential of the sector, Shri
Dubey said that coal gasification will attract substantial investments, encourage the adoption of advanced
technologies, generate large-scale employment opportunities, and catalyse industrial growth across the
country. He emphasized that by converting coal into high-value products, gasification can unlock new
avenues for economic development while enhancing India’s industrial capabilities.
He further remarked that coal gasification has the potential to transform India’s vast coal reserves into a
powerful engine of growth, innovation, and self-reliance, making a significant contribution towards the
goal of building a strong, resilient, and Viksit Bharat by 2047.In his opening remarks, Shri Vikram Dev Dutt, Secretary, Ministry of Coal, stated that the Government
has approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, a programme of
considerable scale and strategic importance. He noted that coal gasification offers a pathway to produce
from India's own resources the fuels, fertilizers, chemicals and industrial inputs that are currently imported
in substantial quantities at significant cost. Emphasizing that India's vast coal endowment is a strategic
asset, he highlighted the role of coal gasification in strengthening energy security and advancing
Atmanirbharta.
Shri Dutt informed stakeholders that, as committed during the New Delhi Roadshow, the Draft Request
for Proposal (RFP) has been placed in the public domain for industry feedback. He stated that the purpose
of the Roadshow was to explain the Scheme and the RFP clearly while hearing the questions, concerns
and suggestions of stakeholders. Inviting active participation from industry, technology providers and
financial institutions, he encouraged them to contribute towards shaping the final framework.
Highlighting the growing importance of self-reliance in an evolving geopolitical landscape, Shri Dutt
noted that recent developments in West Asia have reinforced the need to build resilient domestic supply
chains and reduce dependence on imports. He emphasized that the Union Cabinet has approved the
Scheme and that Central support, State incentives, assured coal linkage and downstream infrastructure
together create a compelling investment ecosystem. Calling upon industry to partner in this national
mission, he stated, “The opportunity is unprecedented. The need is urgent. The support is generous. The
RFP is in your handsA detailed presentation on the Draft Request for Proposal (RFP) under the Scheme for Promotion of
Surface Coal/Lignite Gasification Projects was also made during the Roadshow. The presentation covered
key aspects of the scheme, including eligibility criteria, bidding methodology, incentive structure, coal
linkage provisions, project milestones, evaluation parameters, and participation timelines. Stakeholders
were encouraged to provide their feedback and suggestions on the Draft RFP, which has been placed in the
public domain as part of a transparent and consultative process. Further, BHEL and CIMFR showcased
indigenous coal gasification technologies, underscoring India's commitment to technological self-reliance.
Maharashtra highlighted its policy incentives for cluster-based development, while Chhattisgarh and
Telangana presented attractive investment opportunities to foster greater industry participation and
accelerate the growth of the coal gasification ecosystem.The Roadshow also featured an interactive session and Q&A, during which stakeholders sought
clarifications on project financing, technology partnerships, coal availability, regulatory approvals,
environmental clearances, infrastructure requirements, and downstream opportunities. Detailed responses
were provided by senior officers of Ministry on various provisions of the scheme, and the discussions
reflected strong interest from industry, investors, technology providers, and financial institutions in the
emerging coal gasification sector.
The Roadshow concluded with a strong reaffirmation of the Government's commitment to promoting coal
gasification as a strategic pillar of India's energy and industrial future. With sustained policy support,
industry participation, technology partnerships, and stakeholder collaboration, the initiative is poised to
unlock new opportunities for investment, employment generation, import substitution, and value-added
utilization of domestic coal resources. By strengthening domestic manufacturing capabilities and reducingdependence on critical imports, coal gasification is expected to play an important role in enhancing India's
energy security, fostering industrial development, and advancing the vision of a self-reliant India and a
resilient industrial future
***
Shuhaib T
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