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Cabinet Approves ₹37,500 Cr Scheme for Coal Gasification Projects, Targets 100 MT Gasification by 2030

Target:UPSC GS-IMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
16 May 2026
~2 min
Source: Indian Express
Key Data:₹37,500 crore100 Million Tonnes by 203075 million tonne (mt)20% incentive389 billion tonnes400.715 billion tonnes
Bodies:Union CabinetCoal India Ltd (CIL)Jindal Steel Ltd
Practice MCQs from today's news ▸
What This Article Covers

1.A ₹37,500 crore scheme approved to incentivise 25 projects for converting 75 million tonnes of coal/lignite into syngas.

2.India has the fourth-largest coal reserves globally (389 billion tonnes), with 212 billion tonnes as proven reserves.

3.This policy aims to reduce import dependence for key industrial inputs like LNG, urea (~20% imported), ammonia (~100% imported), and methanol (~80–90% imported).

The Big Picture
Prelims · HighMains · Medium

The Union Cabinet has approved a major ₹37,500 crore scheme to promote coal/lignite gasification into syngas, aiming to process 75 million tonnes and achieve a national target of 100 million tonnes by 2030. This is a strategic move to reduce India's dependence on imported LNG, urea, ammonia, and methanol, leveraging the country's fourth-largest coal reserves for energy security.

Exam Lens

Quick Exam Facts From News

Scheme Outlay₹37,500 crore
Coal Gasification Target (by 2030)100 Million Tonnes (MT)
India's Global Coal Reserve Rank4th largest
Total Estimated Coal Reserve (2025)400.715 billion tonnes
Current Gasification Capacity (Jindal Steel)1.80 million tons per annum (mtpa)

1-Minute Revision

  • ›Scheme Outlay: ₹37,500 crore
  • ›Coal Gasification Target (by 2030): 100 Million Tonnes (MT)
  • ›Target this Data: ₹37,500 crore outlay for 25 projects targeting 75 MT gasification.
  • ›Target this Nodal Body: Ministry of Coal (implementing the scheme via Coal India Ltd).
  • ›Target this Legal Point: The scheme is an addition to the Viability Gap Funding (VGF) scheme of ₹8,500 crore approved in 2024.

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

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

Q1Static LinkageEasy

Which Central Public Sector Undertaking (CPSU) is specifically mentioned in the article as implementing coal gasification projects in partnership with other entities?

Q2Statement-basedHard

Consider the following statements regarding the recently approved coal gasification scheme:

1. It has an outlay of ₹37,500 crore to incentivise projects for producing syngas.

2. The scheme targets the gasification of approximately 100 million tonnes of coal/lignite.

3. It provides a financial incentive of a maximum of 25% of the cost of plant and machinery.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the National Coal Inventory of 2025 cited in the article, what is the total estimated coal reserve (resource) of India as of 01.04.2025?

Q4Application/ImpactMedium

What is a primary strategic objective of promoting coal gasification in India, as highlighted in the news?

All 25 MCQs ▸
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