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India Approves ₹37,500 Cr Incentive Package for Coal Gasification Targeting 100 Million Tonnes by 2030 to Cut Imports

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains Medium
30 May 2026
~2 min
Source: The Hindu
Key Data:₹37,500 crore₹3 lakh crore401 billion tonnes47 billion tonnes100 million tonnes₹8,500 crore
Bodies:Union Ministry of Coal and MinesCoal IndiaBharat Heavy Electricals Ltd (BHEL)Gas Authority of India Ltd (GAIL)Niti AayogDepartment for Promotion of Industry and Internal Trade (DPIIT)Chintan Research Foundation
Practice MCQs from today's news ▸
What This Article Covers

1.The Cabinet approved a ₹37,500 crore package to promote coal gasification, aiming to substitute imports worth ₹3 lakh crore.

2.The Ministry has set a target to gasify 100 million tonnes of coal by 2030, with the new scheme supporting 75 million tonnes.

3.Fluidised-bed gasification is considered suitable for India's high-ash coal, with indigenous technology development crucial for cost reduction.

The Big Picture
Prelims · HighMains · Medium

India is aggressively pursuing coal gasification to leverage its vast coal reserves (401 billion tonnes) and reduce import dependence on key chemicals like urea, ammonia, and methanol. A ₹37,500 crore incentive package aims to gasify 100 million tonnes of coal by 2030, tackling technical challenges posed by high-ash Indian coal.

Exam Lens

Quick Exam Facts From News

Total Coal Reserve401 billion tonnes
Lignite Reserve47 billion tonnes
2030 Gasification Target100 million tonnes
Incentive Package Amount₹37,500 crore
Import Substitution Potential₹3 lakh crore
Previous Package (Jan 2024)₹8,500 crore
Disbursed Amount₹6,233 crore to 8 projects
Urea Import DependencyOne-fifth of requirement
Methanol Import Dependency80-90% of requirement
Talcher Project CommissioningFY2027-28

1-Minute Revision

  • ›Total Coal Reserve: 401 billion tonnes
  • ›Lignite Reserve: 47 billion tonnes
  • ›Target this Data: ₹37,500 crore incentive package for coal gasification.
  • ›Target this Nodal Body: Union Ministry of Coal and Mines.
  • ›Target this Target: 100 million tonnes of coal gasification by 2030.

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

Q1Static LinkageEasy

Which Union Ministry is primarily responsible for the coal gasification initiative mentioned in the news?

Q2Statement-basedHard

Consider the following statements regarding coal gasification in India:

1. The Union Cabinet approved a ₹37,500 crore incentive package to encourage coal gasification.

2. The high-ash content of Indian coal makes fixed-bed gasification the most suitable technology.

3. The Talcher Coal-based Ammonia-urea complex is expected to be commissioned in FY2029-30.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what is the total coal reserve in India?

Q4Application/ImpactMedium

What is the primary objective behind India's push for coal gasification as highlighted in the news?

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