Cabinet Approves ₹37,500 Crore Coal Gasification Scheme Explained

Important for:

UPSC, Haryana HCS, Punjab PCS

Why in News?

The Union Cabinet has approved a revised ₹37,500 crore scheme to promote coal gasification projects in India.

The initiative aims to:

  • Reduce import dependence
  • Improve domestic energy security
  • Encourage cleaner utilisation of coal resources
Infographic explaining the ₹37,500 crore coal gasification scheme approved by the Cabinet for clean energy and industrial growth.
An infographic explaining India’s ₹37,500 crore coal gasification scheme and its benefits.

What is Coal Gasification?

Coal gasification is a process in which:

➤ Coal is converted into synthetic gas (Syngas).

Syngas mainly contains:

  • Carbon monoxide (CO)
  • Hydrogen (H₂)
  • Methane (CH₄)

Uses of Coal Gasification

Syngas can be used for:

✔ Power generation
✔ Fertiliser production
✔ Methanol production
✔ Chemicals industry
✔ Industrial fuel

Key Features of the Scheme

1. ₹37,500 Crore Incentive Scheme

Government support for:
➤ Coal gasification projects

2. Import Reduction

India imports:

  • Fertilisers
  • Natural gas
  • Methanol

Coal gasification can reduce dependence.

3. Energy Security

Supports:
➤ Domestic fuel and chemical production

4. Target for 2030

Goal:
➤ 100 million tonnes coal gasification capacity

Why is Coal Gasification Important?

1. Better Coal Utilisation

India has large coal reserves.

Gasification allows:
➤ Cleaner and efficient usage.

2. Reduces Import Bill

Helps save foreign exchange.

3. Industrial Development

Boosts:

  • Chemical industry
  • Fertiliser sector
  • Manufacturing

4. Strategic Energy Security

Reduces vulnerability to:

  • Global energy shocks
  • Supply disruptions

Concerns & Challenges

1. Environmental Concerns

Coal remains:
➤ A fossil fuel

Carbon emissions remain a challenge.

2. High Initial Investment

Gasification plants require:
➤ Large capital investment

3. Technology Dependence

Advanced technology and infrastructure are required.

Global Context

Countries using coal gasification:

  • China
  • South Africa
  • USA

China has major coal-to-chemical projects.

India-Specific Relevance

India aims to balance:

✔ Energy security
✔ Industrial growth
✔ Cleaner technology transition

while utilising domestic coal resources.

Special Note for Aspirants

Students preparing through UPSC Coaching Chandigarh and IAS Coaching Chandigarh should focus on:

  • Energy transition
  • Clean coal technologies
  • Import dependence
  • Industrial policy reforms

These are highly relevant for GS Paper 3.

Key Insight for UPSC

➤ India’s energy strategy is moving toward:

✔ Diversification
✔ Domestic production
✔ Strategic self-reliance

while managing environmental concerns.

PRELIMS PRACTICE QUESTIONS

Q1. Coal gasification converts coal into:

A. Crude oil
B. Syngas
C. Uranium
D. Ethanol

Answer: B

Q2. Syngas mainly contains:

A. Nitrogen and oxygen
B. Carbon monoxide and hydrogen
C. Helium and neon
D. Sulphur and chlorine

Answer: B

Q3. Coal gasification helps reduce imports of:

A. Gold only
B. Fertilisers and methanol
C. Smartphones
D. Textiles

Answer: B

Q4. Coal gasification is associated with:

A. Space science
B. Energy and chemical production
C. Tourism
D. Banking

Answer: B

Q5. Energy security means:

A. Dependence on imports
B. Stable and reliable energy supply
C. Closing industries
D. Reducing electricity generation

Answer: B

CBL Mains Practice Question

“Coal gasification can strengthen India’s energy security and industrial growth, but environmental concerns remain significant.” Discuss.

FAQs

1. What is coal gasification?

A process converting coal into synthetic gas (syngas).

2. What is syngas?

A mixture of carbon monoxide and hydrogen.

3. Why is coal gasification important?

It reduces import dependence and supports energy security.

4. What products are made through coal gasification?

Methanol, ammonia, fertilisers, and chemicals.

5. Which GS paper covers this topic?

GS Paper 3.

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