**Executive Summary**
This document presents the Ministry of Coal's response to Lok Sabha Starred Question No. *141, addressing progress under the Coal Gasification Mission. It outlines domestic coal production targets up to 2030, advancements in cleaner coal utilization and environmental reclamation via the Coal Gasification Mission and Mission Green Coal Regions. The document also discusses the development of renewable energy capacity by Coal Public Sector Undertakings (PSUs) and targets for 2030.
**Key Points / Main Content**
* **Domestic Coal Production Targets:**
* Financial year 2024-2025 production: 1047.523 MT.
* Projected production targets (in Million Tonnes):
* 2025-26: 1157.00
* 2026-27: 1310.80
* 2027-28: 1378.14
* 2028-29: 1449.75
* 2029-30: 1533.04
* **Coal Gasification Mission Progress:**
* Target: Gasification and liquefaction of 100 MT of coal by 2030.
* 50% rebate in revenue share for coal used for gasification in commercial coal block auctions, provided at least 10% of total coal production is used for gasification.
* Creation of a "Production of Syngas leading to coal gasification" sub-sector in 2022 under Non-Regulated Sector (NRS) linkage auctions.
* Government approved ₹8,500 crore financial assistance to promote government and private-sector participation in setting up coal and lignite gasification projects.
* RFP published on 15.05.2024 for the scheme. Seven projects are expected to be commissioned by FY 2030.
* RFPs for the second round of financial incentives (Category II and III) published on 30.09.2025.
* Coal supply enabled for gasification projects under NRS linkage auction with a floor price on 16.12.2024.
* Additional incentives introduced for Underground (UG) mining applicable to Underground Coal Gasification.
* DPIIT registration granted to a foreign company enabling their participation in public procurement for the CGIL Project to expedite coal gasification in India.
* **Mission GREEN (Grow, Restore, Enrich and Empower Nature) Coal Regions:**
* Coal and Lignite PSUs (CIL, NLCIL, SCCL) undertook environmental restoration activities.
* Approximately 2967 hectares (total 13401 hectare since FY 2019-20) of land has been brought under plantation in and around mining areas.
* 3 eco-parks (total 20 eco parks since FY 2019-20) established during FY 2025–26 (up to October) for recreational purpose.
* **Renewable Energy Capacity Development by Coal PSUs:**
* CIL: Target of 9437 MW (Solar) by FY 2029–30, with 210 MW installed.
* NLCIL: Plan to establish 10,110 MW by 2030, with 1589 MW commissioned.
* SCCL: Plan to establish 504.50 MW (Solar) by 2030, with 245.50 MW commissioned.
**Impact Analysis**
**Government:**
* **Impact:** Responsible for monitoring progress of the initiatives.
* **Action Required:** Ensure projects adhere to timelines and targets, and continue to support the Coal Gasification Mission and Mission Green Coal Regions.
**Coal and Lignite Public Sector Undertakings (PSUs):**
* **Impact:** Implementing agencies for renewable energy and environmental restoration initiatives.
* **Action Required:** Achieve renewable energy targets and continue environmental restoration.
**Foreign Company (Participating in CGIL Project):**
* **Impact:** Registered to participate in public procurement as a licensor and EPC contractor for the CGIL Project.
* **Action Required:** Contribute to expediting coal gasification in India.
Key Entities Referenced
Coal Gasification Mission: A mission focused on the gasification and liquefaction of coal, aiming for 100 MT by 2030, with various policy and financial interventions to reduce investment risks and promote participation.
Mission Green Coal Regions: A mission aimed at environmental restoration in coal and lignite mining regions.
Ministry of Coal: The primary government body overseeing coal production, gasification, and related initiatives mentioned in the document.
GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
STARRED QUESTION NO. *141
TO BE ANSWERED ON 10.12.2025
Progress Under Coal Gasification Mission
*141. Shri Chandra Prakash Choudhary:
Shri Devusinh Chauhan:
Will the Minister of COAL be pleased to state:
(a) the details of the total domestic coal production achieved during the year 2024–25 and the
projected targets for the year 2030;
(b) the progress made under the Coal Gasification Mission and Mission Green Coal Regions
towards ensuring cleaner coal utilisation and environmental reclamation;
(c) the extent of renewable energy capacity developed by Coal Public Sector Undertakings
(PSUs) and the targets set for the year 2030; and
(d) the manner in which these initiatives are contributing towards the twin goals of energy
security and green growth in line with the vision of Viksit Bharat @2047?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) to (d): A Statement is laid on the table of the House.
****
1Statement referred to in reply to part (a) to (d) of Lok Sabha Starred Question No. *141
for answer on 10.12.2025 asked by Shri Chandra Prakash Choudhary and Shri Devusinh
Chauhan regarding Progress Under Coal Gasification Mission:
(a): The total domestic coal production during financial year 2024-2025 is 1047.523 MT. The
domestic coal production plan in the country till 2029-30 is as under:
[Figures in Million Tonnes]
Annual Target Projection Plan
Year
2025-26 2026-27 2027-28 2028-29 2029-30
All India 1157.00 1310.80 1378.14 1449.75 1533.04
(b): Significant progress has been made under the National Coal Gasification Mission,
which targets the gasification and liquefaction of 100 MT of coal by 2030. The Government
has undertaken a wide range of policy, regulatory, and financial interventions to accelerate
project development, reduce investment risks, and expand both public and private sector
participation. The key progress achieved under the Mission is summarised below:
i. In commercial coal block auctions, provision has been made for a 50% rebate in
revenue share for the coal used for gasification purposes, provided the coal quantity
used for gasification is at least 10% of total coal production.
ii. A new Sub-sector, “Production of Syngas leading to coal gasification,” was created in
2022 under the Non-Regulated Sector (NRS) linkage auctions.
iii. On 24.01.2024, the Government approved an outlay of ₹8,500 crore as financial
assistance to promote both government and private-sector participation in setting up
coal and lignite gasification projects.
a. The request for proposal (RFP) for the scheme was published on 15.05.2024, under
which seven projects are currently being implemented and are expected to be
commissioned by FY 2030.
b. In addition to the above, the RFPs for the second round of financial incentives, under
Category II and III have been published on 30.09.2025.
iv. On 16.12.2024, coal supply was enabled for gasification projects under NRS linkage
auction with a floor price at the notified price of the Regulated sector, for coal
gasification projects commissioning within the next 7 years.
v. Additional incentives were introduced for Underground (UG) mining, which shall be
applicable to Underground Coal Gasification.
vi. DPIIT has granted registration to a foreign company enabling their participation in
public procurement in India as a licensor and EPC contractor for the CGIL Project to
expedite coal gasification in India.
Under Mission GREEN (Grow, Restore, Enrich and Empower Nature) Coal Regions, Coal and
Lignite Public Sector Undertakings (PSUs), namely Coal India Limited (CIL), NLC India
Limited (NLCIL) and Singareni Collieries Company Limited (SCCL), have undertaken
activities aimed at environmental restoration in coal and lignite mining regions. As part of these
efforts, approximately 2967 hectares (total 13401 hectare since FY 2019-20) of land has been
brought under plantation in and around mining areas and 3 eco-parks (total 20 eco parks since
2FY 2019-20) for recreational purpose established during FY 2025–26 (up to October) under
the Mission by these PSUs. These activities contribute towards improving the ecological
condition of post-mining and adjacent landscapes.
(c): The extent of renewable energy capacity developed by coal PSUs and the plan for the year
2030 are as under:
i. CIL has set a target of installing 9437 MW of Renewable Energy (Solar power capacity)
by FY 2029–30, out of which installed capacity is 210 MW.
ii. NLCIL has planned to establish 10,110 MW of Renewable Energy capacity by 2030,
out of which the commissioned capacity is 1589 MW.
iii. SCCL has planned to establish 504.50 MW of Renewable Energy (Solar power
capacity) by 2030, out of which the commissioned capacity is 245.50 MW.
(d): The development of renewable energy projects, coal gasification and Mission Green would
significantly contribute towards energy security in a sustainable manner. Coal gasification
ensures removal of SOx, NOx and dust particulate in air due to burning of coal. Coal
gasification facilitates utilization of the chemical properties of coal and is usable in producing
downstream products such as Synthetic Natural Gas, Methanol & Ethanol, Ammonia,
Ammonium Nitrate etc which will help in import substitution and moving towards self-
sufficiency.
*****
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