The ministry of coal has set a target to gasify 100 Million Tonnes (MT) of coal by FY 2030 in line with its energy transition plans 

The government revealed the main priorities for the coal sector in 2024 in an attempt to fulfil the growing demand for electricity. The agenda, which is centred on boosting underground mining operations and production capacities, includes the introduction of a policy intended to finance coal gasification projects. These programmes are in line with the nation’s urgent need to meet its demands for surge power.

Amrit Lal Meena, the coal secretary, revealed that two policies relating to coal gasification have already been notified. Plans are to provide financial support and tax benefits to projects that fall under this category. In keeping with the larger energy transformation plan, the Ministry of Coal has set an ambitious goal to gasify 100 million tonnes (MT) of coal by the fiscal year 2030. Meena declared, “We are releasing a policy for specific tax breaks and financial support (for coal gasification plants). This is being thought upon and we’ll make sure coal gasification picks up speed.” He underlined that by 2030, the government hopes to reduce imports and reduce carbon emissions by fostering coal gasification in the right conditions.

Meena presented the requirements for a mandatory green clearance procedure in response to environmental concerns about coal gasification. Before starting any coal gasification plant operations, project proponents must carry out environmental impact assessment studies and create an environment management plan that will be carefully reviewed by an expert committee. In addition, the government has implemented a policy that offers a revenue share rebate of 50 per cent  for upcoming commercial coal block auctions that are specifically focused on fossil fuels utilised in gasification. This refund is a calculated move to promote sustainability in the coal industry, provided that at least 10 per cent of the entire production is used for gasification.