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Cabinet Approves ₹37,500 Crore Coal/Lignite Gasification Scheme | UPSC Notes

Why in News?

The Union Cabinet approved a Scheme for Promotion of Surface Coal/Lignite Gasification Projects with a financial outlay of ₹37,500 crore. The scheme targets gasification of 100 Million Tonnes (MT) of coal by 2030.

Key Facts for Prelims

  • Financial Outlay: ₹37,500 crore
  • National Target: Gasify 100 MT of coal by 2030
  • Product: Syngas (synthesis gas) — versatile feedstock for fuels and chemicals
  • India’s Coal Reserves: ~401 billion tonnes (one of world’s largest)
  • India’s Lignite Reserves: ~47 billion tonnes
  • Coal’s share in India’s energy mix: Over 55%

Why Coal Gasification? Import Substitution

ProductCurrent Import Dependence
LNGMore than 50% imported
Urea~20% imported
Ammonia~100% imported
Methanol~80–90% imported

Trap / Confusing Points

ConfusionCorrect Fact
Gasification = combustion of coalGasification converts coal to syngas — a chemical process, not direct combustion
Target is 100 MT by 2025Target is 100 MT by 2030
Coal’s share in energy is 30%Coal accounts for over 55% of India’s energy mix
India has limited coal reservesIndia has ~401 billion tonnes — one of the world’s largest

Practice MCQs

1. Financial outlay of the Coal/Lignite Gasification Promotion Scheme?

a. ₹15,000 crore
b. ₹25,000 crore
c. ₹37,500 crore
d. ₹50,000 crore

Ans: C
The Cabinet approved the scheme with a financial outlay of ₹37,500 crore.

2. Coal gasification primarily produces?

a. CNG
b. Synthesis gas (Syngas)
c. LPG
d. Coal Tar

Ans: B
Gasification converts coal/lignite into syngas — a versatile feedstock for fuels and chemicals.

3. India’s national target for coal gasification by 2030?

a. 50 MT
b. 75 MT
c. 100 MT
d. 150 MT

Ans: C
India’s target is gasifying 100 MT of coal by 2030.

4. Coal’s share in India’s energy mix?

a. Over 30%
b. Over 40%
c. Over 55%
d. Over 70%

Ans: C
Coal accounts for over 55% of India’s energy mix.

5. Which import product is currently ~100% imported and can be substituted by coal gasification?

a. LNG
b. Methanol
c. Ammonia
d. Urea

Ans: C
India imports ~100% of its ammonia. Domestic syngas production can address this dependency.

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To know more about India’s coal gasification mission, Click here.

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