India's Union Cabinet has approved a ₹37,500 crore (€3.3 million) package to boost coal gasification, in order to create synthetic gas (syngas) to then produce further downstream products like urea, methanol and ammonia, among others.
“India’s import bill for key substitutable products LNG, urea, ammonium nitrate, ammonia, coking coal, methanol, DME and others stood at approximately ₹2.77 lakh crore (€25 billion) in FY2025, a vulnerability further exposed by the ongoing geopolitical situation in West Asia,” said the press statement. The scheme will help India become more self-sufficient, targeting approximately 75 million tonnes of coal and lignite, contributing significantly to the 100 million tonnes target set for 2030.
The government also extended the coal linkage tenure for up to 30 years, entailing the production of syngas leading to coal gasification, to provide investors with long-term certainty.
The scheme would provide a financial incentive of up to one-fifth of the cost of plant and machinery, with a cap of ₹5,000 crore for a single project, extending to ₹9,000 crore for any single-product project - excluding syngas and urea. A single entity would be able to access a maximum of ₹12,000 crore across all project categorisations.
India approves ₹37,500 crore package for coal gasification
