HYDERABAD: Union Coal and Mines Minister G Kishan Reddy on Monday said that the Union government is aggressively promoting coal gasification as a transformative strategy to reduce India’s dependence on imported petroleum products, fertilisers, chemicals and natural gas, while creating a robust industrial value chain and generating large-scale employment.
Addressing the media here, the Union minister said that the Centre has launched a `46,000-crore incentive scheme to accelerate coal gasification projects across the country.
Describing it as one of the most significant reforms undertaken in the coal sector, he said the technology enables the conversion of coal into synthetic gas (syngas), which can be used to manufacture fertilisers, petrochemicals, transport fuels, ammonia, hydrogen and a range of industrial chemicals.
Kishan said that the government expects coal gasification projects to attract investments of nearly `4 lakh crore in the coming years and generate around one lakh jobs.
Surface, underground coal gasification technologies
The Union minister also said that both surface and underground coal gasification technologies are being actively promoted and that private sector participation is being encouraged through a transparent, incentive-driven framework.
Highlighting the broader transformation of the coal sector, he said that India has emerged as the world’s second-largest producer and consumer of coal and possesses the fifth-largest coal reserves globally.
He stressed that coal continues to remain the backbone of the country’s energy security, with nearly 72-73% of India’s electricity generated through coal-based thermal power plants.
According to Kishan, the coal sector directly employs about five lakh people and indirectly supports nearly 25 lakh jobs across the country.
On the issue of imports, he said that the Centre has undertaken sustained efforts to reduce dependence on foreign coal despite India possessing abundant domestic reserves. Coal imports declined by around 8% last year and a further 4% this year, resulting in foreign exchange savings of nearly `60,000 crore, he said.
He also noted that India crossed the landmark of producing more than one billion tonnes of coal for the first time in its history and has sustained production above that level for the second consecutive year. He said the government is closely monitoring production, transportation and stock levels to ensure uninterrupted power supply nationwide.
‘India secured critical mineral blocks in Argentina’
Kishan also announced that the Centre is implementing a `32,000-crore National Critical Minerals Mission aimed at strengthening the exploration, mining, processing and recycling of minerals vital for electric vehicles, semiconductors, batteries, artificial intelligence and defence manufacturing. He said India has already secured critical mineral blocks in Argentina through a newly established public sector entity and is exploring similar opportunities in other countries.
He said that the government has launched an ambitious programme for the scientific closure and reclamation of abandoned coal mines. As part of the initiative, 147 mined-out coal blocks across the country are being restored through afforestation, water conservation, fisheries, tourism projects and solar energy development. The government aims to complete scientific mine closure activities at these sites by 2028 with the participation of all stakeholders, he added.