The Government of India is preparing a massive Rs 50,000 crore incentive plan to boost coal gasification projects across the country, according to ET Now. The initiative aims to accelerate India’s shift toward cleaner energy solutions while utilising its vast coal reserves.
The Coal Ministry has already prepared the framework, proposing that incentives be extended through Viability Gap Funding (VGF) to support large-scale gasification projects. The proposal is currently undergoing inter-ministerial consultations, including review by the Finance Ministry, before being presented to the Union Cabinet for approval within the next three to four months.
As per ET Now, the government plans to revive around 20,000 MW of gas-based power plants by supplying gas produced from these coal gasification projects. The ministry has also completed stakeholder consultations and is considering establishing the projects near existing gas-based power stations to ensure cost efficiency and logistical ease.
#SourcesSay | Govt plans ₹50,000 cr incentive for coal gasification to revive gas-based power plants and target 100 MT by 203@priyadarshi108 #GOI #IndianGovernment pic.twitter.com/pB7WOZvULy
— ET NOW (@ETNOWlive) November 10, 2025
The government had earlier sanctioned an Rs 8,500 crore incentive scheme for coal gasification and now seeks to expand it significantly under the new proposal. The target is to achieve 100 million tonnes (MT) of coal gasification by 2030, a milestone that could transform India’s energy landscape and reduce reliance on imported natural gas.
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