India Prioritises Coal Gasification to Cut Fuel Imports

India targets Rs 37,500 cr coal gasification to reduce fuel and fertiliser imports through hydrogen, synthetic natural gas and methanol production.

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Nov 14, 2026

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India Prioritises Coal Gasification to Cut Fuel Imports

India targets Rs 37,500 cr coal gasification to reduce fuel and fertiliser imports through hydrogen, synthetic natural gas and methanol production.

In brief

India targets Rs 37,500 cr coal gasification to reduce fuel and fertiliser imports through hydrogen, synthetic natural gas and methanol production. India's study identifies hydrogen, synthetic natural gas and methanol as top coal-derived products to cut imports of LPG, LNG, urea and DAP. Originally reported by The…

Study Prioritises Coal Products

Hydrogen, synthetic natural gas, methanol and ammonia should be prioritised for production from coal to reduce India's dependence on imported fuels and fertilisers.

Government Scheme Targets 100m Tonne Capacity

The government aims to gasify 75 million tonnes of coal annually, targeting 100 million tonnes of coal gasification capacity by 2030.

2024 Import Costs Highlight Need

India imported nearly USD 37 billion worth of LPG, LNG, urea and DAP in 2024, with LPG and LNG alone exceeding USD 27 billion.

PNGRB Chairperson Notes Early Stage

PNGRB Chairperson Anil Kumar Jain said coal gasification in India is at an early stage and commercial viability of technologies needs to be established.

C-DEP President Emphasises Economic Benefits

C-DEP President Jaijit Bhattacharya stated the government's Rs 37,500-crore commitment requires identifying products that deliver greatest economic benefits.

China's Experience Offers Lessons

The study draws lessons from China's coal-to-chemicals industry, which expanded domestic production but also highlights risks of rapid capacity expansion.

The headline

India's study identifies hydrogen, synthetic natural gas and methanol as top coal-derived products to cut imports of LPG, LNG, urea and DAP.

Read the original on The Economic Times

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