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Rs 37.5k crore coal gasification plan cleared with tight caps on incentives and milestones

Rs 37.5k crore coal gasification plan cleared with tight caps on incentives and milestones

India has cleared a Rs 37.5k crore coal gasification scheme aimed at boosting energy security. Support to developers will cover up to 20% of plant and machinery costs via competitive bidding, with incentives released in four equal, milestone-linked instalments. The scheme also sets strict ceilings: Rs 5,000 crore per project, Rs 9,000 crore per product (with exceptions), and Rs 12,000 crore per entity group.

Summarised by Beize from a story on The Economic Times on 13 May 2026
Cabinet clears Rs 37500 crore coal gasification plan to slash import dependence and attract huge investment

Cabinet clears Rs 37500 crore coal gasification plan to slash import dependence and attract huge investment

The Union Cabinet has approved a Rs 37,500 crore scheme to expand surface coal and lignite gasification projects. The plan targets gasifying about 75 million tonnes of coal and is expected to pull in investments of up to Rs 3 lakh crore, with Union Minister Ashwini Vaishnaw highlighting reduced import dependence as a key goal.

Summarised by Beize from a story on Republic on 13 May 2026

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Coal gasification could shield India from future energy shocks and cut import dependence

Coal gasification could shield India from future energy shocks and cut import dependence

Experts say India should rapidly expand domestic coal gasification to reduce vulnerability to global energy shocks. By converting dry coal into syngas, the process can support alternative fuel use while lowering carbon emissions. The move is also framed as a step toward energy security and import substitution, with downstream benefits for critical sectors such as fertilizers.

Summarised by Beize from a story on The Economic Times on 12 May 2026
Larsen and Toubro wins big Odisha deal to build 2000 TPD coal to ammonium nitrate plant

Larsen and Toubro wins big Odisha deal to build 2000 TPD coal to ammonium nitrate plant

Larsen & Toubro has bagged a major order to build a coal-to-ammonium nitrate facility in Odisha with a capacity of 2,000 tonnes per day. The project aims to strengthen India’s coal gasification push while reducing reliance on imported ammonium nitrate. The development also supports the broader Aatmanirbhar Bharat goal of boosting domestic capabilities in critical chemical production.

Summarised by Beize from a story on The Economic Times on 5 May 2026
Cabinet set to approve Rs 37500 crore incentive push for coal gasification projects

Cabinet set to approve Rs 37500 crore incentive push for coal gasification projects

The Union Cabinet is expected to soon clear a Rs 37,500 crore incentive scheme aimed at scaling coal gasification projects. The plan is designed to accelerate cleaner energy output while reducing India’s reliance on imported LNG and urea, and to better monetize domestic coal. If approved, it could reshape how gas and related fuels are produced.

Summarised by Beize from a story on The Economic Times on 3 May 2026
India could slash LPG imports with a 20% DME blend and save Rs 34200 crore yearly

India could slash LPG imports with a 20% DME blend and save Rs 34200 crore yearly

India may be able to cut LPG imports by blending 20% dimethyl ether (DME) produced from coal gasification. A report estimates savings of 6.3 million tonnes of LPG annually and over USD 4 billion in foreign exchange, alongside about Rs 34,200 crore yearly. The Bureau of Indian Standards already allows the blend, but investment depends on clearer policy to expand domestic DME production.

Summarised by Beize from a story on The Economic Times on 24 Apr 2026

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