Rs 46,000 crore push to speed up coal gasification in India: Kishan Reddy

New Delhi: Coal and Mines Minister G Kishan Reddy said on Friday that India is expediting coal gasification projects with an outlay of Rs 46,000 crore to boost domestic production of fertilisers and gas which will reduce the country’s dependence on imports.

Describing coal as an important industrial raw material, the Minister said plans to convert coal into syngas, ammonia, urea and methanol through coal gasification are being expedited.

Speaking at the 'Agrasar Bharat Manch' event in New Delhi, he noted that coal continues to meet 55 per cent of India's primary energy needs and accounts for 74 per cent of its electricity generation. The minister pointed out that the government aims to spur commercial-scale coal gasification projects in the near future.

The Union Cabinet has recently approved a scheme for the promotion of surface coal gasification projects with a financial outlay of Rs 37,500 crore. The scheme marks a major step towards accelerating India’s coal gasification programme, advancing the national target of gasifying 100 million tonnes (MT) of coal by 2030. The move aims to strengthen energy security and reduce dependence on imports of key products such as LNG, urea, ammonia and methanol.

Reddy also said that the government is also working on boosting the production of critical minerals and looking at overseas mining assets for exploration and extraction.

The push comes as India races to secure supplies of these minerals, which are vital inputs for high-tech products such as EVs, telecommunications, solar power units and defence hardware.

"We are currently exploring the mines of Argentina and simultaneously having discussions with other countries," Reddy said at the event. "The government is also encouraging Indian entrepreneurs to go aboard for the purpose of exploration and processing of critical minerals," he added.

In 2025, Mineral Exploration and Consultancy Limited (MECL), a PSU under the ministry, signed a memorandum of understanding (MoU) with the provincial government of Catamarca in Argentina for a deeper collaboration in exploration and resource development of critical minerals.

Argentina, which has vast lithium reserves, is a crucial partner for India in securing essential minerals required for electric vehicle batteries and renewable energy storage, Reddy said.

The minister said the government is developing a rare earth element corridor in Kerala, Tamil Nadu, Andhra Pradesh and Odisha. The country would be self-sufficient in rare earth elements in the coming days, he added.

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