Hyderabad, Jun 11 (PTI) Union Coal Minister G Kishan Reddy on Thursday said the Union Cabinet's recent approval of the Rs 46,000 crore combined scheme for Promotion of Surface Coal/Lignite Gasification Projects marks a transformational step in the country’s energy and industrial journey.
He said it will inject fresh momentum into large-scale gasification projects across the country.
Addressing a roadshow on Coal/Lignite Gasification Projects here, he expressed confidence over India's emergence as one of the world's most promising destinations for coal gasification investments.
“We have coal in abundance, we have policy support, and we have commitment. Coal gasification will become a new driver of industrial growth and Atmanirbhar Bharat,” he said.
The Centre is committed to driving reforms in the sector, with ease of doing business as a key priority, and creating a supportive ecosystem for investors and technology providers, he added.
According to him, despite its vast coal reserves, the country continues to remain heavily dependent on imports of methanol, ammonia, fertilizer feedstocks and several critical industrial chemicals, resulting in a substantial outflow of foreign exchange every year.
Coal gasification offers a strategic pathway to convert domestic coal into value-added products, strengthen energy security, reduce import dependence and enhance economic resilience.
To ensure a transparent and consultative implementation process, he informed stakeholders that the Draft Request for Proposal (RFP) has already been placed in the public domain for comments and suggestions, and invited industry stakeholders to contribute their valuable inputs for further strengthening the framework.
He highlighted India's strong resource base and growing energy needs, noting that the country possesses nearly 400 billion tonnes of coal reserves, the fifth largest in the world with sufficient availability for several decades.
He stated that India is today the world's second-largest producer and consumer of coal, with nearly 70 per cent of its electricity generation dependent on coal and millions of livelihoods linked to the sector.
Vikram Dev Dutt, Secretary, Union Ministry of Coal, informed the stakeholders that, as committed during the New Delhi Roadshow held earlier, the Draft Request for Proposal (RFP) has been placed in the public domain for industry feedback.
He said the purpose of the roadshow was to explain the scheme and the RFP clearly while hearing the questions, concerns and suggestions of stakeholders.
Inviting active participation from industry, technology providers and financial institutions, he urged them to contribute towards shaping the final framework.
Underscoring the growing importance of self-reliance in an evolving geopolitical landscape, Dutt noted that recent developments in West Asia have reinforced the need to build resilient domestic supply chains and reduce dependence on imports.
He emphasised that the Union Cabinet has approved the scheme and that central support, state incentives, assured coal linkage and downstream infrastructure together create a compelling investment ecosystem.
A detailed presentation on the Draft Request for Proposal (RFP) under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects was also made during the roadshow.
The presentation covered key aspects of the scheme, including eligibility criteria, bidding methodology, incentive structure, coal linkage provisions, project milestones, evaluation parameters, and participation timelines.
Further, BHEL and CIMFR showcased indigenous coal gasification technologies, underscoring India's commitment to technological self-reliance, an official release said.
The roadshow also featured an interactive session and Q&A, during which stakeholders sought clarifications on project financing, technology partnerships, coal availability, regulatory approvals, environmental clearances, infrastructure requirements, and downstream opportunities.
The roadshow brought together industry leaders, technology providers, investors, financial institutions, coal and lignite companies, industry associations, and representatives from Central and State Governments. PTI SJR SJR ROH
