India is taking significant steps to reduce its dependency on coal imports by advancing coal gasification technology. On May 30, 2026, Union Coal and Mines Minister G. Kishan Reddy highlighted the potential of this technology to substitute imports worth up to ₹3 lakh crore.
The Union Cabinet has approved a substantial incentive package of ₹37,500 crore to promote surface coal gasification. This technology not only aims to reduce import dependency but also offers a range of downstream products, enhancing the country’s energy security.
Historically, India has relied heavily on coal imports to meet its energy demands. The current initiative marks a strategic shift towards utilizing domestic resources more efficiently. Coal gasification is seen as a key component in this transition, offering both economic and environmental benefits.
Looking ahead, the government plans to hold further discussions with industry stakeholders to streamline the implementation process. The success of this initiative could set a precedent for other sectors, aligning with India’s broader goal of energy independence.
Published in SouthAsianDesk, May 31, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
