5 September 2026

Next article →

Coal Gasification Incentive Scheme Zero Bids

Show this topic for:

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.

  1. 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?

    View answer →

  2. 2019 · Q26 · General Studies · 2 marks

    In the context of which one of the following are the terms 'pyrolysis and plasma gasification' mentioned?

    View answer →

  3. 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?

    View answer →

  4. 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

    View answer →

  5. 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?

    View answer →

← All Mains notes for 5 September 2026

PDF