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India Launches ₹46,000 Cr Coal Gasification Push for ₹4 Lakh Cr Investment, Targets 100 Mn Tonnes Allocation

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
08 Jun 2026
~2 min
Source: The Hindu
Key Data:₹4 lakh crore investment₹3 lakh crore savings1 lakh jobs100 million tonnes coal₹46,000 crore incentives147 mines by 2028
Bodies:Ministry of Coal and MinesDistrict Mineral Foundations (DMFs)
Practice MCQs from today's news ▸
What This Article Covers

1.Government prioritizes surface and underground coal gasification to reduce import dependence and produce ammonia, methanol, hydrogen, and fertilizers.

2.A ₹46,000 crore incentive package is announced for allocating 100 million tonnes of coal for gasification, targeting ₹4 lakh crore investment and 1 lakh jobs.

3.The news connects to India's coal sector reforms, mine closure plans, and the role of District Mineral Foundations (DMFs), offering multi-dimensional fodder for Economy and Environment mains questions.

The Big Picture
Prelims · HighMains · Medium

The government has launched a major energy transition initiative focusing on coal gasification to reduce import dependency and unlock high-value chemical products. With a target of ₹4 lakh crore in investments and ₹3 lakh crore in foreign exchange savings, this policy aims to leverage India's vast coal reserves for energy security and industrial growth, directly linking to GS-III topics on resource management and infrastructure.

Exam Lens

Quick Exam Facts From News

Investment Target₹4 lakh crore
Forex Savings Target₹3 lakh crore
Jobs Target1 lakh
Coal Allocation for Gasification100 million tonnes
Incentive Package₹46,000 crore
Abandoned Mines Closure Target147 by 2028
Coal Import Savings (Last Year)₹60,000 crore
DMF Share of Mining Proceeds2%

1-Minute Revision

  • ›Investment Target: ₹4 lakh crore
  • ›Forex Savings Target: ₹3 lakh crore
  • ›Target this Data: ₹46,000 crore incentive for 100 million tonnes coal gasification.
  • ›Target this Nodal Body: Union Ministry of Coal and Mines.
  • ›Target this Legal Point: 2% of mining proceeds to District Mineral Foundations (DMFs).

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Under which Union Ministry does the initiative for coal gasification fall?

Q2Statement-basedHard

Consider the following statements regarding the coal gasification initiative:

1. It targets an investment of ₹4 lakh crore and aims to save approximately ₹3 lakh crore in foreign exchange.

2. A key objective is to reduce import dependence for agricultural fertilizers and industrial chemicals.

3. The government has allocated 200 million tonnes of coal for this purpose with incentives worth ₹46,000 crore.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the news, what is the total amount of incentives announced by the government to promote coal gasification?

Q4Application/ImpactMedium

What is a stated advantage of pursuing Underground Coal Gasification (UCG) as mentioned in the article?

All 15 MCQs ▸
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