Union Coal and Mines Minister G Kishan Reddy has emphasized that coal gasification will play a crucial role in strengthening India’s energy security, reducing import dependence, and supporting industrial growth.
Balanced Energy Approach Needed for Growing Economy
Addressing stakeholders at the India Energy Summit 2026, the minister highlighted the need for a balanced energy strategy that aligns economic growth with sustainability.
He noted that under the leadership of Prime Minister Narendra Modi, India is witnessing rapid progress in manufacturing, infrastructure, digital connectivity, and innovation.
India’s Coal Reserves and Rising Demand
Reddy pointed out that India has vast coal reserves of around 400 billion tonnes, among the largest globally.
- Coal accounts for 55% of India’s energy mix
- Contributes nearly 74% of electricity generation
- Current annual demand stands at around 1 billion tonnes
He added that demand is expected to rise significantly by 2047, underlining the continued importance of coal in India’s energy landscape. At the same time, India remains committed to achieving net-zero carbon emissions by 2070.
Coal Gasification: A Transformative Technology
Describing coal gasification as a transformational technology, the minister explained that it converts coal into synthetic gas (syngas) — a mixture of hydrogen and carbon monoxide.
This syngas can be used to produce:
- Clean fuels
- Chemicals
- Fertilizers
- Hydrogen
The process enables efficient utilization of domestic resources while improving economic viability.
Reducing Import Dependence
Reddy highlighted India’s heavy dependence on imports:
- 83% of crude oil
- 50% of natural gas
- Over 90% of methanol and fertilizers
He stressed that enhancing domestic capabilities through coal gasification is essential for strategic energy security.
National Coal Gasification Mission
To promote this technology, the government has launched the National Coal Gasification Mission, aiming to gasify 100 million tonnes of coal by 2030.
Key highlights include:
- ₹8,500 crore incentive support for public and private projects
- Investments exceeding ₹64,000 crore already underway
- Focus on advanced technologies like Underground Coal Gasification (UCG) to utilize difficult reserves with reduced environmental impact
Call for Collaborative Ecosystem
The minister called for building a collaborative ecosystem involving industry, academia, startups, and research institutions to accelerate innovation and adoption of coal gasification across sectors such as power, oil, gas, and fertilizers.
