# 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.
- Title: India Prioritises Coal Gasification to Cut Fuel Imports
- Summary: India targets Rs 37,500 cr coal gasification to reduce fuel and fertiliser imports through hydrogen, synthetic natural gas and methanol production.
- Keywords: coal gasification, hydrogen production, synthetic natural gas, methanol production, import substitution, fertiliser imports, cdep-cws study, national coal gasification mission, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/energy/oil-gas/rs-37500-cr-coal-gasification-push-cdep-cws-study-identifies-priority-chemicals-to-cut-import/articleshow/135824512.cms
- Author: PTI
- Published: 2026-11-14T06:11:00+00:00
- Read time: 1 min
- Topics: coal gasification, hydrogen production, synthetic natural gas, methanol production, import substitution, fertiliser imports, cdep-cws study, national coal gasification mission
## 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.
## Key takeaway

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