Why in news
- Government permitted developers under the Rs 37,500-crore coal gasification scheme to use imported coal without a domestic linkage guarantee.
- Foreign companies selected to set up units must establish a local Indian entity.
What is the Coal Gasification Scheme?
- Initiative to convert coal into syngas, chemicals, fertilizers, and clean energy fuels.
- Aims to reduce import dependence on natural gas, methanol, and ammonia while utilising domestic energy resources.
Key operational relaxed guidelines
- Developers must arrange their own fuel supply, as the Centre removed mandatory domestic coal allocation guarantees.
- Imported coal is explicitly permitted for feedstock to ensure operational viability of gasification plants.
- Financial support is extended directly to plant and machinery capital costs.
- Foreign entities winning bids are mandated to set up domestic local subsidiaries.
Why it matters
- Solves feedstock constraint for low-ash coal requirements in advanced gasification technologies.
- Accelerates India's target of gasifying 100 million tonnes of coal by 2030.
Key terms
Coal Gasification
Process of producing syngas—a mixture consisting primarily of carbon monoxide, hydrogen, carbon dioxide, natural gas, and water vapour—from coal and water, air, or oxygen.
Syngas
Synthesis gas produced through gasification used as an intermediate for synthetic natural gas or chemical manufacturing.
Prelims facts
- Coal gasification produces syngas composed mainly of carbon monoxide and hydrogen.
- Imported coal is permitted as feedstock without mandatory domestic coal guarantees.
Mains discussion
- Evaluation of coal gasification in balancing industrial feedstock import reduction against carbon emission goals.
Source: Economic Times Industry
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2025 · Q45 · General Studies · 2 marks
Consider the following substances: I. Ethanol II. Nitroglycerine III. Urea Coal gasification technology can be used in the production of how many of them? -
2019 · Q48 · General Studies · 2 marks
Consider the following statements: 1. Coal sector was nationalized by the Government of India under Indira Gandhi. 2. Now, coal blocks are allocated on lottery basis. 3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self- sufficient in coal product. Which of the statements given above is/are correct? -
2019 · Q26 · General Studies · 2 marks
In the context of which one of the following are the terms 'pyrolysis and plasma gasification' mentioned? -
2019 · Q84 · General Studies · 2 marks
Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years? -
2018 · Q10 · General Studies · 2 marks
Consider the following statements: 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The Government does not impose any customs duty on all the imported edible oils as a special case. Which of the statements given above is/are correct?