Through this initiative, the government is actively offering financial incentives and policy support to promote the conversion of coal into valuable resources like chemicals, methanol, and Synthetic Natural Gas.

In a parallel effort to strengthen energy security and reduce import dependence, the government is promoting coal gasification as a key component of India’s self-reliance strategy. The initiative aims to produce syngas domestically for use in sectors such as fertilizers, steel and energy, thereby reducing reliance on imported petroleum products and saving foreign exchange. To boost investment in the sector, the Centre has announced incentives worth Rs 46,000 crore, while states including Uttar Pradesh, Maharashtra and Odisha have introduced supportive policies. The Fertilizer Ministry is also working on a policy framework to encourage urea production through coal gasification technology. The government has further assured that adequate coal reserves are available, with an estimated 81-day stock for the power sector, ensuring uninterrupted fuel supply to thermal power plants.