## Policy Summary: Coal Gasification Technology for Indian High Ash Content Coal
On September 2, 2025, NITI Aayog organized a workshop in New Delhi focusing on "Coal Gasification Technology for Indian High Ash Content Coal," chaired by Dr. V K Saraswat, Member, NITI Aayog. The workshop aimed to advance the National Coal Gasification Mission, Make in India, and Atmanirbhar Bharat initiatives by promoting domestic manufacturing and reducing import dependency through sustainable utilization of India's substantial coal reserves (378 billion tonnes, with 199 billion tonnes proven reserves).
Key participants included representatives from the Ministry of Coal, IIT Delhi, Fraunhofer IKTS (Germany), BHEL, IIT Roorkee, GAIL, CIMFR, IOCL, CIL, TFL, NLCIL, EIL, LT Group, JSPL, DVC, CCL, PDIL, and CSIR-IMMT. Discussions centered on aligning coal gasification technology choices with the characteristics of Indian coal, which has a high ash content (25-45%) compared to coal from other countries.
The Ministry of Coal's scheme on coal gasification, supported by ₹8,500 crore in Viability Gap Funding (VGF) for public, private, commercial, and R&D projects, was highlighted. Letters of Award (LOAs) have already been issued to selected applicants under this scheme.
Dr. Saraswat emphasized India's long-standing engagement with coal gasification and the demonstrated potential to gasify high ash content coal through indigenous technology trials. Sh. Vikram Dev Dutt, Secretary, Ministry of Coal, reaffirmed the government's commitment to utilizing India's coal reserves through cleaner, more efficient, and environmentally responsible technologies. Prof. Martin Grabner from Fraunhofer IKTS shared international best practices relevant to India's coal profile. Pilot-scale initiatives from IIT Delhi, Thermax, BHEL, and CIMFR showcased indigenously developed coal gasification technologies.
The workshop provided a platform to evaluate fluidized bed, circulating bed, and entrained flow systems. Participants emphasized the need to scale pilot projects, integrate Carbon Capture, Utilization and Storage (CCUS), and ensure industry involvement in technology development. Experts recommended circulating fluidized bed gasification technology for Indian high ash content coal due to the chemistry of Indian coal ash. The government's policy support through VGF, assured coal supply, and dedicated auction mechanisms position India to advance its coal gasification roadmap and undertake large-scale projects from an energy security perspective.
Key Entities Referenced
NITI Aayog: An Indian government policy think tank involved in organizing the workshop.
Ministry of Coal: The Indian government ministry involved in coal gasification initiatives and funding.
National Coal Gasification Mission: An Indian government initiative promoting coal gasification.
IIT Delhi: Indian Institute of Technology Delhi, an academic institution involved in developing coal gasification technology.
Fraunhofer IKTS, Germany: A German research institute providing international expertise on coal gasification technologies.
Viability Gap Funding (VGF): A scheme by the Ministry of Coal with 8,500 crore funding to support coal gasification projects.
Talcher fertilizer plant: A fertilizer plant in Odisha, India, where early coal gasification efforts were undertaken.
Atmanirbhar Bharat: An initiative by the Government of India for promoting self-reliance and domestic manufacturing.
NITI Aayog
NITI Aayog Organizes Workshop on “Coal
Gasification Technology for Indian High Ash Content
Coal”
Posted On: 04 SEP 2025 7:51PM by PIB Delhi
NITI Aayog organized a workshop titled “Coal Gasification Technology for Indian High Ash Content
nd
Coal” at NITI Bhawan, New Delhi, on 2 September, 2025 under the chairmanship of Dr. V K Saraswat,
Member NITI Aayog. The workshop saw participation from the Ministry of Coal, IIT Delhi, Professor
Fraunhofer IKTS, Germany and active participation from government organizations and industry partners
such as BHEL, IIT Roorkee, GAIL, CIMFR, IOCL, CIL, TFL, NLCIL, EIL, L&T Group, JSPL, DVC, CCL,
PDIL, CSIR-IMMT and Dastur Energy.
The workshop is aligned with the National Coal Gasification Mission, “Make in India” and “Atmanirbhar
Bharat” initiatives, promoting domestic manufacturing and reducing import dependency.
India holds the world’s fourth-largest coal reserves—378 billion tonnes, with 199 billion tonnes proven
reserves. To harness these resources sustainably and reduce import dependence, the government is promoting
coal gasification. Ministry of coal notified scheme on coal gasification with ₹8,500 crore Viability Gap
Funding (VGF) to support public and private commercial and R&D gasification projects. Letters of Award
(LOAs) have been issued to those selected applicants under various categories of the scheme.
Indian coal has typically high ash content, ranging from 25% to 45%, in contrast to coals in other countries
that are low in ash content. Therefore, it is very important to align coal gasification technology choice with
coal characteristics to ensure sustained, high-availability operations at the lowest possible cost structure.
Therefore, this workshop specifically called for discussing the Indian and global coal gasification
technologies that are suitable for India’s high ash content coal.
Dr. V K Saraswat, Member, NITI Aayog, commended the initiatives taken by the Ministry of Coal for
faster implementation of coal gasification in India. He further highlighted India’s early engagement with coal
gasification, dating back to pre-2018 efforts at the Talcher fertilizer plant, when feasibility was still under
active debate. He noted that initial industry feedback consistently questioned the viability of gasifying Indian
coal due to its high ash content. Today, India has demonstrated the potential to gasify coal with high ash
content through proven indigenous technology trials.
Sh. Vikram Dev Dutt, Secretary, Ministry of Coal, underscored the national objective of accelerating the
utilization of India’s vast coal reserves through cleaner and more efficient technologies. He emphasized
the government’s commitment to sustainability, including the allocation of dedicated funds to support
environmentally responsible initiatives. He stated that the workshop serves as a valuable platform to observe,
learn, and gain practical insights from ongoing developments in the sector.
Prof. Martin Grabner from Fraunhofer IKTS, Germany, shared international insights into coal
gasification technologies, drawing from his extensive industrial background and affiliations. His presentation
offered valuable guidance for adapting global best practices to India’s unique coal profile and industrial
landscape.
After their remarks, pilot-scale initiatives led by IIT Delhi and Thermax, BHEL and CIMFR also shared
insights into their indigenously developed coal gasification technologies with the industry. Collectively, these
projects debunk the long-standing myth that Indian coal is non-gasifiable and mark a decisive step toward
cleaner, scalable, and domestically anchored coal utilization.The workshop provided a comprehensive platform to evaluate coal gasification technologies suited for Indian
coal with high of ash content, emphasizing the importance of aligning technology selection with coal
characteristics. Experts from IIT Delhi, Thermax, BHEL, CIMFR, and Fraunhofer IKTS shared insights into
fluidized bed, circulating bed, and entrained flow systems, highlighting both indigenous innovations and
global experiences. Participants stressed the need for scaling pilot projects to commercial levels, integrating
CCUS, and ensuring industry involvement in core technology development. With policy support through
Viability Gap Funding, assured coal supply, and dedicated auction mechanisms, India is well-positioned to
advance its coal gasification roadmap from an energy security perspective and take up large-scale coal
gasification projects.
Most of the experts recommended circulating fluidized based bed gasification technology for Indian High Ash
Content Coal, specifically due to the fact that chemistry of Indian coal ash does not support other gasification
technologies viz entrained low ash fixed bed.***
MJPS/SR
(Release ID: 2163864)