NITI Aayog Hosts Workshop on Coal Gasification Technology

NITI Aayog organized a workshop titled “Coal Gasification Technology for Indian High Ash Content Coal” at NITI Bhawan, New Delhi, on 2 September 2025. The event was aligned with the National Coal Gasification Mission, as well as the Make in India and Atmanirbhar Bharat initiatives, with the goal of promoting domestic manufacturing and reducing import dependency.

Harnessing India’s Coal Reserves

India possesses the world’s fourth-largest coal reserves—378 billion tonnes, including 199 billion tonnes of proven reserves. To utilize these resources sustainably and reduce imports, the Government of India is promoting coal gasification. In 2020, the Coal Gasification Mission was launched with a target of gasifying 100 million tonnes of coal by 2030, supporting the vision of energy independence by 2027 and developed India by 2047.

₹8,500 Crore Viability Gap Funding for Projects

The Ministry of Coal has notified a scheme on coal gasification with ₹8,500 crore Viability Gap Funding (VGF) to support public, private, commercial, and R&D projects. Letters of Award (LoAs) have already been issued to selected applicants under various categories of the scheme.

Technology Choices for High Ash Content Coal

Indian coal typically has a high ash content (25%–45%), unlike the low ash coal available in other countries. Experts at the workshop highlighted the need to match technology with coal characteristics. Most recommended circulating fluidized bed gasification technology, since Indian coal ash chemistry does not favor other technologies like entrained or fixed bed gasifiers.

Applications of Coal Gasification

Coal gasification is a thermo-chemical process that converts coal into synthesis gas (syngas)—mainly carbon monoxide and hydrogen. Syngas can be further used to produce methanol, ammonium nitrate, Synthetic Natural Gas (SNG), fertilizers, and petrochemicals. This technology ensures cleaner and diversified use of coal, aligning with India’s climate and sustainability goals.

Reducing Import Dependence

India currently imports about 83% of its oil, over 90% of its methanol, and 13–15% of its ammonia. Coal gasification offers a pathway to reduce reliance on these imports, conserve foreign exchange, and strengthen the domestic fertilizer, oil, gas, and petrochemical sectors.

Government Incentives to Boost Gasification

To promote coal gasification, the Ministry of Coal has introduced:

• 50% rebate in revenue share under commercial coal auction policies for gasification projects.
• Recognition of syngas production as a new sub-sector.
• Long-term coal allotments to gasification plants.

(Source: PIB)