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India Launches Massive Coal‑to‑Gas Initiative to Boost Energy Independence

The Indian government has launched a Rs 37,500 crore scheme to promote coal and lignite gasification projects.

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Key Points

6 points
1

Funding: Indian rupees 37,500 crore (approximately 375 billion rupees).

2

First‑round applications: seven, from major industrial and public sector companies.

3

Key products from syngas: urea (fertilizer), methanol, ammonia, hydrogen, synthetic natural gas.

4

Strategic goals: improve energy security, cut import costs, develop clean coal technologies, and create jobs.

5

Capacity target: 100 million tonnes of coal gasification by 2030, 75 million tonnes under this scheme.

6

Projected investment: between 250 billion and 300 billion rupees.

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Summary

Seven applications were received in the first round, including proposals from Adani Enterprises, NTPC, Talcher Fertilisers, Gallantt Ispat and Shyam Sel & Power.

Coal gasification converts coal into syngas, which can be processed into products such as urea, methanol, ammonia, hydrogen and synthetic natural gas.

The scheme aims to reduce reliance on imports of these commodities, create up to three hundred billion rupees of investment, and generate significant employment.

India targets a total coal gasification capacity of 100 million tonnes by 2030, with 75 million tonnes expected from this programme.

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New Words to Learn

12 words
lignite
a soft type of coal that is easier to turn into gas
syngas
a mixture of gases made from coal, used to create other chemicals
urea
a fertilizer that helps crops grow
methanol
a chemical used as fuel or to make other products
ammonia
a chemical used in fertilizers and cleaning products
hydrogen
a light gas that can be used for clean energy
synthetic natural gas
man‑made gas that works like natural gas
energy security
having a reliable supply of energy for a country
import
buying goods from other countries
investment
money spent to help a project grow
capacity
the maximum amount that can be produced
tonne
a metric unit of weight equal to 1,000 kilograms
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