New Delhi: Coal gasification will play a key role in strengthening India’s energy security and industrial growth, Union Minister G. Kishan Reddy said while addressing the Bharat Electricity Summit 2026.
Speaking to industry leaders and policymakers, the Minister said India’s growing economy needs a balanced energy strategy. He added that development must align with sustainability goals as demand rises.
Reddy highlighted India’s strong coal reserves, estimated at nearly 400 billion tonnes. He said coal currently accounts for about 55% of the energy mix and nearly 74% of electricity generation.
He noted that annual coal demand stands at around one billion tonnes and is expected to increase further by 2047. However, he reiterated that India remains committed to achieving net zero emissions by 2070.
The Minister described coal gasification as a transformative technology. He said it converts coal into syngas, which can produce cleaner fuels, chemicals, fertilisers and hydrogen.
He pointed out that India depends heavily on imports. The country imports about 83% of crude oil, 50% of natural gas, and over 90% of methanol and fertilisers. Therefore, he stressed that improving domestic energy capacity is critical.
Coal gasification mission targets 100 million tonnes
Reddy said the government launched the National Coal Gasification Mission to promote adoption. The initiative targets 100 million tonnes of coal gasification by 2030.
He added that an incentive framework of Rs. 8,500 crore supports both public and private sector projects. Several large projects are already underway, with investments exceeding Rs. 64,000 crore.
The Minister also highlighted advanced methods such as Underground Coal Gasification. He said this technology can access untapped reserves while reducing environmental impact.
Further, he called for collaboration among industry, academia, start-ups and research institutions. He noted that coal gasification supports sectors such as power, oil and gas, and fertilisers.
Reddy reaffirmed the government’s commitment to policy support and faster approvals. He said these measures would encourage investment and innovation in the sector.
He expressed confidence that India can emerge as a global leader in clean coal technologies. He added that coordinated efforts would boost energy security, sustainability and self-reliance.
