Streamlined Approvals and Assured Buyers Key to India's 2030 Coal Gasification Target, Says Report

India's goal to gasify 100 million tonnes (MT) of coal by 2030 will necessitate streamlined regulatory approvals, assured buyers, and effective project execution, a newly released report highlights.

Titled ‘Coal Gasification for 'Atmanirbhar Bharat': Shaping the Next Industrial Revolution’, the report was published by global professional services firm Alvarez & Marsal (A&M) and launched at the Gasification Summit.

The coal ministry projects total investments of ₹2.5 to ₹3 lakh crore across 25 projects to meet the 100 MT coal gasification target by the end of the decade. To support these projects, the report emphasizes the necessity of a single-window approval mechanism featuring fixed timelines. It also highlights the importance of long-term offtake agreements to enhance project bankability, alongside the deployment of technology specifically suited to India's high-ash coal.

The report notes that coal gasification has the potential to reduce India's reliance on imported methanol, natural gas, and fertilisers, thereby aligning with the country's Atmanirbhar Bharat objectives. Although India possesses the world's fifth-largest coal reserves, imports accounted for approximately 94 per cent of its methanol consumption and about 50 per cent of its natural gas consumption in FY25. Financial figures cited for FY26 indicate that natural gas imports were valued at roughly ₹1.18 lakh crore, while urea imports stood at about ₹46,000 crore.

To guide implementation, the report references long-term offtake models such as India's ethanol programme and the Great Plains plant in the United States. It highlights specific domestic initiatives, noting that Coal India will offtake the ammonium nitrate output from Bharat Coal Gasification and Chemicals Limited's Lakhanpur project for application in mine blasting.

Additionally, the report calls for dedicated funding for research and development and pilot projects to adapt gasifiers for high-ash Indian coal. It also recommends the development of integrated industrial hubs equipped with shared infrastructure, alongside environmental safeguards embedded directly into project designs.

With appropriate policy and commercial enablers, the report concludes that coal gasification can transition from isolated projects into an integrated value chain, contributing to India's broader self-reliance goals.

"The projected investment of up to ₹3 lakh crore in coal gasification presents a massive industrial opportunity for India. However, as the Alvarez & Marsal report highlights, large-scale capital deployment in heavy sectors requires predictable regulatory frameworks and clear demand visibility. Establishing single-window clearances and long-term offtake agreements will be critical to mitigating risk for developers and ensuring these capital-intensive projects reach financial closure." — Dr. Shishir Gupta, Founder & CEO, StartupLanes