Coal gasification can help substitute imports of up to ₹3 lakh crore, says Union Coal Minister G. Kishan Reddy

Coal gasification can help substitute imports of up to ₹3 lakh crore, stated Union Coal Minister G. Kishan Reddy, adding, the sustainable mining method also extends to ensuring self-reliance for India’s industries and overall economic security.

“Each year, the country imports products valued at up to ₹3 lakh crore that could can also be availed via coal gasification,” he stated at a promotional roadshow for surface coal and lignite gasification projects here on Thursday (May 28, 2026).

Coal gasification entails conversion of coal into syngas, which can be used to produce chemicals, fertilisers and hydrogen.

It was also informed that the government is working on a policy to include within the broader urea policy — an incentivised component that shall include urea produced via coal gasification.

On May 13, the Union Cabinet had approved the scheme for promotion of surface coal/lignite gasification projects with a financial outlay of ₹37,500 crore.

Explaining the aspect on ensuring economic security, Mr. Reddy held, “India is nearly 90% import-dependent for many industrial chemicals. For procuring these essential chemicals, the country spends a lot of foreign currency,” adding, “Geopolitical tensions, such as the conflict in West Asia which have caused shipping disruptions globally have also impacted India’s supply chains. Thus, gasification 1779979028 also extends as a subject for strategic industrial, self-reliance, economic security and [the vision for] Viksit Bharat.”

‘Technology for coal gasification not a problem’

In response to a question from The Hindu about technology for coal gasification, the Union Minister for Coal held it would not be any problem with the government having eased restrictions for import of technology and private sector collaborating in the realm.

“There is technology in India at present, Bharat Heavy Electricals Ltd. [BHEL] also has the technology. Additionally, certain private companies have purchased the technology from outside and have inked MoUs as well. We are also encouraging players who come up with indigenous technology,” he stated, adding, “Other than this, several countries as China and United States are also willing to provide the technology — we have also relaxed policies for its import [of technology].”

Policy in works for gasification-based urea

Also present at the roadshow, Krishna Kant Pathak, Joint Secretary at the Dept. of Fertilisers informed they were working on a policy for coal gasification-based urea manufacturing, in other words, inclusion of an incentive component for urea that is manufactured via coal gasification.

“We are in the process of making [a policy on] coal gasification-based urea manufacturing. Within one month, we should be ready with that,” he stated.