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Amid PM Modi’s fuel-saving drive, Cabinet clears Rs 37,500 crore coal gasification push
The scheme is designed to promote value-added use of local coal resources and reduce reliance on imported fuels.
Amid Prime Minister Narendra Modi’s broader austerity and energy security push, the Cabinet has approved key measures spanning energy, agriculture and infrastructure, sources said.
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It cleared a Rs 37,500 crore coal gasification incentive scheme aimed at boosting production of gas, urea and chemicals from domestically produced coal, strengthening energy security and reducing import dependence.
The scheme is designed to promote value-added use of local coal resources and reduce reliance on imported fuels.
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Coal gasification refers to the process of converting coal into synthetic gas, or syngas, which can be used as an alternative fuel as well as a feedstock for chemicals and fertilisers, while also helping reduce carbon emissions compared with conventional coal usage.