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The government has operationalized the ₹37,500 crore coal gasification

ICICIdirect Research 29 Jun 2026 DISCLAIMER

News: As per media sources, the government has operationalized the ₹37,500 crore coal gasification incentive scheme through a competitive bidding framework. The scheme provides financial assistance for coal and lignite gasification projects, with incentives linked to project milestones and timely commissioning. It aims to support around 75 MT of coal gasification capacity and reduce India's dependence on imported fuels and feedstock by promoting the production of methanol, ammonia, synthetic natural gas (SNG), hydrogen, and other chemicals

View: The development is positive for Coal India, as the scheme is expected to accelerate domestic coal gasification projects and create incremental demand for domestic coal. It also supports the government's target of achieving 100 MT of coal gasification by 2030, which could diversify coal consumption beyond the power sector. With Coal India already pursuing multiple coal gasification projects and partnerships, the scheme is likely to support long-term volume growth and enhance value addition from domestic coal resources

Impact: Positive

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