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GOVERNMENT OF INDIA
MINISTRY OF COAL
RAJYA SABHA
UNSTARRED QUESTION NO. 2589
ANSWERED ON 16.03.2026
INDIA'S DECARBONIZATION ROADMAP
2589. DR. SIKANDER KUMAR:
Will the Minister of COAL be pleased to state:
(a) the specific allocation and detailed roadmap for the ₹35,000 crore incentive package for
coal gasification proposed in the Union Budget 2026-27 and the manner in which this
quadrupling of funds from earlier levels would accelerate the target of achieving 100 million
tonnes of gasification by 2030;
(b) the manner in which Government plan to utilise the ₹20,000 crore outlay for carbon capture
to align record production levels with India's net zero commitments; and
(c) the measures being taken to operationalise the National Coal Trading Exchange through the
dedicated unit being established by the National Stock Exchange?
ANSWER
MINISTER OF STATE FOR COAL AND MINES
(SHRI SATISH CHANDRA DUBEY)
(a): There is no incentive package of ₹35,000/- crores proposed in the Union Budget 2026-27
for coal gasification. However, the Government has approved a Financial Incentive Scheme
with an outlay Rs. 8500/- crores for coal and lignite gasification projects on 24.01.2024. Under
this scheme, total of 7 projects have been selected for financial support. This incentive scheme
will give fillip to coal gasification in the country.
(b): The outlay of Rs. 20,000/- crores has been provisioned for carbon capture technologies
across lead industrial/energy sectors, which is to be used by Nodal Ministries to achieve India's
net zero commitment. So far as the coal sector is concerned, its PSUs, particularly Coal India
Limited (CIL), are actively pursuing a multi-pronged strategy to achieve Net Zero goals and
earn Green Credits, ensuring that record production aligns with India's net-zero commitments.
Key initiatives include implementation of First Mile Connectivity (FMC) measures to
minimize road transport emissions; scaling up Renewable Energy (RE) installations across
operations; extensive plantation drives in and around coal mining areas; adoption of energy
efficiency measures in mining and allied activities; and deployment of clean coal technologies
such as Coal Gasification, Coal Bed Methane (CBM), and Coal Mine Methane (CMM).
Under the Government of India's Green Credit Programme, CIL has registered and paid
for the afforestation of 1793.79 hectares, contributing significantly to carbon sequestration.(c): Ministry of Coal is in the process of setting up Coal Exchange(s) in the country in
pursuance of the legislative provisions of the Mines and Minerals (Development and
Regulation) Amendment Act, 2025. Section 18B of the Mines and Minerals (Development and
Regulation) Amendment Act, 2025, empowers the Central Government to frame the rules for
the purpose of Coal Exchange(s). In pursuance of the provisions, Coal Exchange Rules have
been drafted after public consultation so as to provide for the objectives and structure of the
Coal Exchange(s) to be established in the country, including their registration criteria.
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