Why in news
- The Ministry of Coal's Rs 37,500-crore financial incentive scheme for coal gasification projects received no bids from private or public entities prior to its deadline.
What is the Coal Gasification Scheme?
- A national incentive framework designed to convert domestic coal into syngas, chemicals, and clean energy fuels.
- Aims to achieve 100 million tonnes of coal gasification by 2030 to reduce reliance on imported natural gas and crude derivatives.
Key execution issues
- Zero market response due to high capital expenditure requirements, technology risks, and uncompetitive pricing against natural gas.
- Exposes persistent viability gaps in clean coal technology adoption without long-term off-take guarantees.
Why it matters
- Imperils India's targets for coal-based syngas production and clean coal technology adoption.
- Highlights the trade-off between domestic high-ash coal utilisation and clean energy transition economics.
Key terms
Coal Gasification
Process of converting coal into synthesis gas (syngas) comprising carbon monoxide, hydrogen, and carbon dioxide.
Syngas
A fuel gas mixture used as an intermediate in producing synthetic natural gas, ammonia, or methanol.
Prelims facts
- Coal gasification produces syngas, a raw material for urea and synthetic natural gas production.
Mains discussion
- Financial and technological impediments to scaling clean coal technologies in India.
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 · Q26 · General Studies · 2 marks
In the context of which one of the following are the terms 'pyrolysis and plasma gasification' mentioned? -
2025 · Q12 · GS III · 15 marks
Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved? -
2025 · Q66 · General Studies · 2 marks
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of ₹ 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. ₹ 45,000 crores are to be kept as performance- based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below -
2023 · Q88 · General Studies · 2 marks
Consider the following statements : Statement-I : India accounts for 3.2% of global export of goods. Statement-II : Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?