The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects with an outlay of ₹37,500 crore.
The scheme aims to promote coal gasification technology to convert coal and lignite into Synthesis Gas (Syngas) for producing fuels and chemicals.
It is implemented by the Ministry of Coal and targets 100 million Tonnes (MT) of coal gasification by 2030.
Financial assistance under the scheme is capped at 20% of plant and machinery cost, with a maximum support of ₹5,000 crore per project.
The scheme aims to reduce imports of urea, ammonia, methanol, and natural gas and strengthen India’s energy security under the Atmanirbhar Bharat initiative.