Speedy project approvals, assured buyers key to India's 100 MT coal gasification

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The report ‘Coal Gasification for 'Atmanirbhar Bharat’ noted that the coal ministry projects investments of ₹2.5-3 lakh crore across 25 projects to achieve the target of 100 MT of coal gasification by 2030.

By PTI

Updated - October 22, 2026 at 04:24 PM.

The country's target to gasify 100 million tonnes of coal by 2030 will require streamlined approvals, assured buyers and effective project execution, according to a report.

The report, ‘Coal Gasification for 'Atmanirbhar Bharat': Shaping the Next Industrial Revolution’, by global professional services firm Alvarez & Marsal (A&M) was launched on Thursday at the Gasification Summit here.

The report noted that the coal ministry projects investments of ₹2.5-3 lakh crore across 25 projects to achieve the target of 100 MT of coal gasification by 2030.

It also stressed the need for a single-window approval mechanism with fixed timelines, long-term offtake agreements to improve project bankability, and technology suited to India's high-ash coal.

The report highlighted that coal gasification could reduce India's dependence on imports of methanol, natural gas, and fertilisers, supporting the country's Atmanirbhar Bharat ambitions.

India holds the world's fifth-largest coal reserves, yet imports met about 94 per cent of its methanol consumption and about 50 per cent of its natural gas consumption in FY25. In FY26, natural gas imports were worth about ₹1.18 lakh crore and urea imports about ₹46,000 crore.

The report also points to long-term offtake models, such as India's ethanol programme and the Great Plains plant in the US, and notes that Coal India will take the ammonium nitrate output of Bharat Coal Gasification and Chemicals Limited's Lakhanpur project for use in mine blasting.

It called for R&D and pilot funding to adapt gasifiers to high-ash Indian coal, integrated industrial hubs with shared infrastructure, and environmental safeguards built into project design.

The report further said that with the right policy and commercial enablers in place, coal gasification can move from isolated projects to an integrated value chain and make a meaningful contribution to India's Atmanirbhar Bharat ambitions.

Published on October 22, 2026

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