Coal Gasification Drive Fast-Tracked with ₹37,500 Crore Incentive as India Bolsters Energy Security: Anurag Thakur
India is fast-tracking coal gasification projects with a ₹37,500 crore incentive package to strengthen energy security and support cleaner fuel transition. Anurag Thakur highlighted policy reforms, reduced clearance timelines, rising renewable capacity, and record coal output amid global energy uncertainties.
Thakur stated that the government has approved an incentive package worth ₹37,500 crore to ensure rapid implementation of coal gasification projects and to extend necessary financial support wherever required. He added that both the private sector and the public sector will participate in executing these projects, marking a coordinated national push toward cleaner utilization of coal resources.
He further noted that the Ministry of Environment, Forest and Climate Change has introduced significant reforms aimed at expediting clearances for coal gasification initiatives. According to him, these administrative decisions are intended to reduce procedural delays and facilitate faster availability of coal in a cleaner energy form.
“The government has approved ₹37,500 crore so that coal gasification projects can be implemented quickly and incentives can be provided wherever required. Both the private and public sectors will work on it,” Thakur said.
Addressing the broader geopolitical context, including the ongoing West Asia crisis, Thakur emphasized the importance of balancing India’s energy security requirements with its long-term climate commitments, including the net zero target for 2070. He reiterated that India’s environmental commitments remain firm across national and international platforms.
He highlighted that renewable energy already accounts for nearly half of India’s total energy capacity and continues to expand steadily. At the same time, he underlined that coal remains a critical domestic resource due to its large availability and the country’s significant power demand.
The committee meeting also reviewed coal auction and allocation processes, measures to strengthen energy security, and strategies aligned with the vision of a developed India by 2047. Discussions focused on improving coordination among the coal, environment, and power ministries, reducing approval timelines, and enhancing logistics for coal transportation and power generation.
Thakur pointed out notable progress in administrative efficiency, stating that environmental clearance timelines have been significantly reduced from approximately 182 days to nearly 80 days due to sustained reforms and continuous review mechanisms.
He also noted that India has achieved record annual coal production of one billion tonnes, with ongoing efforts to further improve efficiency across approvals, production systems, and supply chains, reinforcing the country’s push toward energy security and industrial expansion.

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