The central government is accelerating its coal gasification strategy as part of efforts to improve energy security, reduce import dependence and make better use of India's large coal reserves. Union Minister for Coal and Mines G Kishan Reddy said the government is encouraging industries to adopt advanced coal conversion technologies with major financial support.

The Centre has announced incentives worth around Rs 46,000 crore to promote coal gasification projects, with more than 35 companies expected to begin related activities soon. The government is also encouraging technology partnerships to address gaps in domestic expertise and develop a stronger coal gasification ecosystem.

The process of coal gasification involves the conversion of coal to synthesis gas (syngas), which then forms the basis for manufacture of various products, such as chemicals, fertilisers, synthetic natural gas among others. The project intends to help India become independent of energy imports by adding value to its coal deposits.

Emphasising the significance of the industry, the minister stated that India has one of the largest coal reserves in the world, and coal remains an essential source of electricity production. He further stressed that better utilisation of coal via technological advancement is necessary to attain energy independence.

A key project in this respect is the Lakhanpur Coal Gasification project of Rs 25,016 crores in Odisha, which is supposed to boost industrial development and ensure production of energy goods within the country.

The government is targeting large-scale coal gasification capacity by 2030 under its broader strategy to strengthen energy security. The move is being positioned as a way to balance rising energy demand with more efficient utilisation of available resources.