Coal gasification can transform India’s abundant domestic coal reserves into the molecules it currently imports, thereby strengthening energy security, provided the associated carbon costs are managed through CCUS.

India has significantly expanded its coal gasification ambitions through the approval of a Rs. 375 billion Surface Coal and Lignite Gasification Scheme, building on the Rs. 85 billion scheme launched by the Union Cabinet in 2024.

The programme aims to gasify around 75 million tonnes of coal, supported by incentives of up to 20% of plant and machinery costs and coal linkages extending for up to 30 years.