Coal gasification key to India’s energy security, says Kishan Reddy

Union Minister G Kishan Reddy said coal gasification will play a key role in boosting India’s energy security and reducing imports. The government aims for 100 million tonnes by 2030 with major investments and policy support already underway

New Delhi: Union Minister for Coal and Mines G. Kishan Reddy on Sunday highlighted that coal gasification will be pivotal in strengthening India’s energy security, reducing import dependence, and supporting industrial growth.

Addressing the Bharat Electricity Summit 2026, the minister, describing coal gasification as a key transformative technology, said that it converts coal into syngas, which can be further used to produce cleaner fuels, chemicals, fertilisers, and hydrogen. This approach enables more efficient and sustainable use of domestic resources while enhancing economic resilience.

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The minister said to promote adoption, the government has launched the National Coal Gasification Mission with a target of 100 million tonnes of gasification by 2030. An incentive framework of Rs 8,500 crore has been introduced to support public and private sector projects, with several large-scale initiatives already underway and investments exceeding Rs 64,000 crore in the pipeline. Advanced technologies such as Underground Coal Gasification (UCG) were also highlighted for their potential to tap previously inaccessible reserves while reducing environmental impact.

He said that India’s rapidly expanding economy requires a balanced energy approach that aligns development with sustainability. The minister underlined India’s robust coal reserves, estimated at nearly 400 billion tonnes — among the largest globally — where coal accounts for about 55 per cent of the energy mix and nearly 74 per cent of electricity generation. With annual coal demand currently around one billion tonnes and expected to rise significantly by 2047, he emphasised the continued importance of coal even as India remains committed to achieving Net Zero emissions by 2070.

He also pointed out India’s dependence on imports — approximately 83 per cent of crude oil, 50 per cent of natural gas, and over 90 per cent of methanol and fertilisers — making energy security a strategic priority.

The minister called for a collaborative ecosystem involving industry, academia, start-ups, and research institutions, noting that coal gasification spans multiple sectors, including power, oil & gas, and fertilisers. He reaffirmed the government’s commitment to streamlined approvals, supportive policies, and incentives to encourage early participation and investment.

He expressed confidence that with innovation, indigenous technology development, and coordinated efforts, India can emerge as a global leader in clean coal technologies while advancing energy security, sustainability, and self-reliance.