Page 63 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

proportionate distribution of the gas offered under the bidding process, the contractor shall
offer gas to bidders belonging to the CNG/ PNG sector on priority.

Coal Gasification Key to India’s Energy Security and Industrial Growth: Union Minister G.Kishan Reddy

Union Minister for Coal and Mines, G. Kishan Reddy, highlighted that coal gasification will be pivotal in
strengthening India’s energy security, reducing import dependence, and supporting industrial growth,
while addressing the Bharat Electricity Summit 2026.

Addressing industry leaders, experts, start-ups, researchers, students, and policymakers, the Minister
said India’s rapidly expanding economy requires a balanced energy approach that aligns development
with sustainability. He noted that under the leadership of Prime Minister Narendra Modi, the country is
experiencing strong growth across manufacturing, infrastructure, digital connectivity, and innovation.

The Minister underlined India’s robust coal reserves, estimating nearly 400 billion tonnes among the
largest globally—where coal accounts for about 55% of the energy mix and nearly 74% of electricity
generation. With annual coal demand currently around one billion tonnes and expected to rise
significantly by 2047, he emphasized the continued importance of coal. Even as India remains
committed to achieving Net Zero emissions by 2070.

Describing coal gasification as a key transformative technology, he explained that it converts coal into
syngas, which can be further used to produce cleaner fuels, chemicals, fertilizers, and hydrogen. This
approach enables more efficient and sustainable use of domestic resources while enhancing economic
resilience. He also pointed out India’s dependence on imports—approximately 83% of crude oil, 50% of
natural gas, and over 90% of methanol and fertilizers—making energy security a strategic priority.

To promote adoption, the Government has launched the National Coal Gasification Mission with a target
of 100 million tonnes of gasification by 2030. An incentive framework of ?8,500 crore has been
introduced to support public and private sector projects, with several large-scale initiatives already
underway and investments exceeding ?64,000 crore in the pipeline. Advanced technologies such as
Underground Coal Gasification (UCG) were also highlighted for their potential to tap previously
inaccessible reserves while reducing environmental impact.

The Minister called for a collaborative ecosystem involving industry, academia, start-ups, and research
institutions, noting that coal gasification spans multiple sectors including power, oil & gas, and
fertilizers. He reaffirmed the Government’s commitment to streamlined approvals, supportive policies,
and incentives to encourage early participation and investment.

He expressed confidence that with innovation, indigenous technology development, and coordinated
efforts, India can emerge as a global leader in clean coal technologies while advancing energy security,
sustainability, and self-reliance.

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