India's 2030 Coal Gasification Target of 100 Million Tonnes Remains Largely Unachieved

Six years after India launched its ambitious coal gasification mission, progress remains limited, raising concerns over a missed opportunity as global energy uncertainties intensify due to ongoing tensions in West Asia. The initiative, aimed at reducing reliance on imported fuels, is now back in focus as policymakers reassess strategies to strengthen energy security amid volatile international markets.

Coal gasification, a process that converts coal into cleaner gaseous fuels, was positioned as a key pillar in India’s long-term energy roadmap. The government had set a target to gasify 100 million tonnes of coal by 2030, but with just four years remaining, tangible outcomes have been minimal. The lack of significant advancement has drawn attention to structural and policy-level challenges that have slowed implementation.

Despite renewed intent, financial utilisation under the programme has been a major concern. While the allocation for the mission saw a sharp increase to ₹3,525 crore for the 2026–27 fiscal year, up from ₹300 crore in the previous year, official data shows that most of the earlier allocation remained unspent until January 2026. This underutilisation has raised questions about execution capacity and coordination among stakeholders.

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The timing of this slowdown is particularly critical, as disruptions in global energy supply chains linked to geopolitical conflicts in West Asia have heightened India’s import vulnerability. With the country heavily dependent on crude oil and gas imports, delays in scaling domestic alternatives like coal gasification have amplified concerns about energy resilience and long-term sustainability.

Experts note that challenges such as high project costs, technological complexities, and limited private sector participation have hindered the mission’s progress. Additionally, regulatory bottlenecks and uncertainties around commercial viability have made investors cautious, further delaying the rollout of large-scale gasification projects across the country.

As the government revisits its strategy, industry observers believe that faster decision-making, policy clarity, and incentives for private investment will be crucial to revive the mission. With global energy dynamics shifting rapidly, accelerating coal gasification could play a key role in reducing import dependence, enhancing energy security, and supporting India’s broader economic and industrial growth objectives.

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