Lok Sabha Question No. 243 (STARRED), answered on 2025-12-17
Subject: Coal Gasification and Coal-to-Chemical Projects
Ministry: COAL
Asked by: Shri Konda Vishweshwar Reddy, Shri Anil Firojiya

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK  SABHA STARRED QUESTION NO. *243

ANSWERED ON 17.12.2025

## COAL GASIFICATION AND COAL-TO-CHEMICAL PROJECTS

## † *243.  SHRI ANIL FIROJIYA:

## SHRI KONDA VISHWESHWAR REDDY:

Will the Minister of COAL be pleased to state:

(a)  the  details  of  the  current  status  of  ongoing  and  proposed  coal  gasification  and  coal-tochemical projects in the country along with the expected timeline for commissioning of the same;

(b) the total coal quantity allocated so far under the Coal Gasification Allocation Policy in the country particularly in Chhattisgarh along with the extent to which the same has translated into actual project progress;

(c)  whether  the  Government  has  finalised  incentives  or  feasibility  support  mechanisms  to accelerate the adoption of gasification technologies and if so, the details thereof;

d)  the  estimated  contribution  of  the  coal  gasification  programme  in  reducing  import dependence on petrochemicals, methanol, ammonia and other industrial feedstocks; and

(e) whether there is any proposal for coal gasification in Singrauli, and if so, the details thereof?

## ANSWER

## MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a) to (e) : A statement is laid on the table of the house.

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STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF THE LOK SABHA STARRED QUESTION NO. 243 ANSWERED ON 17.12.2025 REGARDING COAL GASIFICATION AND COAL-TO-CHEMICAL PROJECTS ASKED BY SHRI ANIL FIROJIYA: SHRI KONDA VISHWESHWAR REDDY:

(a):  Currently,  there  is  an  operational  coal  gasification  project  set  up  by  M/s  Jindal  Steel Limited  (JSL)  at  Angul  district,  Odisha.  The  Government  has  launched  the  National  Coal Gasification  Mission  to  promote  coal/  lignite  gasification  projects  for  cleaner  use  of  coal/ lignite and to substitute imports of chemicals, petrochemicals and fertilisers. New projects are being implemented by PSUs as well as the private sector.

Coal  India  Limited  (CIL)  is  implementing  the  following  four  coal  gasification  projects  in partnership with other Central Public Sector Undertakings (CPSUs):

1. Talcher Coal-Based Ammonia-Urea Complex: Talcher Fertilisers Limited (TFL), a Joint  Venture  of   CIL,  Rastriya  Chemicals  and  Fertilisers  Limited  (RCFL),  Gas Authority of India Limited (GAIL) and Fertiliser Corporation of India Limited (FCIL), is setting up a coal-based ammonia-urea complex. Commissioning is expected in FY 2027-28.
2. Bharat  Coal  Gasification  and  Chemicals  Limited  (a  joint  venture  of  CIL  and Bharat  Heavy  Electricals  Limited) has  been  incorporated  for  setting  up  of  coal gasification-based ammonium nitrate plant at Lakhanpur, Odisha. Scheduled commissioning is in 2029-30.
3. Coal Gas India Limited (a joint venture of CIL and GAIL) has been incorporated for  setting  up  a  coal-to-synthetic  natural  gas  plant at  Bardhaman,  West  Bengal. Scheduled commissioning is in 2029-30.
4. CIL Project at Western Coalfields Limited: Coal-to-synthetic natural gas project at Chandrapur, Maharashtra. Scheduled commissioning is in 2029-30.

Further, the following 4 (four) coal gasification projects are being set up by private entities:

1. Jindal  Steel  Limited  (JSL): JSL  is  setting  up  a  coal  gasification  project  at  Angul district,  Odisha,  for  Direct  Reduced  Iron  (DRI)  production.  Commissioning  is scheduled in 2029-30 as per the Coal Gasification Plant Development and Production Agreement (CGPDPA).
2. Greta  Energy  and  Metal  Private  Limited: The  company  is  setting  up  a  coal gasification project at Bhadravati, Chandrapur, Maharashtra, for Direct Reduced Iron (DRI) production. Commissioning is scheduled in 2029-30 as per the CGPDPA.
3. New Era Cleantech Solution Pvt. Ltd.: The company is setting up a coal gasification project  at  Bhadravati,  Chandrapur,  Maharashtra,  for  the  production  of  ammonium nitrate and hydrogen. Commissioning is scheduled in 2029-30 as per the CGPDPA.
4. New Era Cleantech Solution Pvt. Ltd.: The company is setting up a demonstration coal gasification project at Bhadravati, Chandrapur, Maharashtra for the production of ethanol. Commissioning is scheduled in 2029-30 as per the CGPDPA.

(b): CIL has allocated provisional coal linkages of 3.9 Million Tonnes (MT) to its joint venture companies. Additionally, Letters of  Intent (LoI) for  a total quantity of 1.45 MT have been issued to consumers procuring coal through the Non-Regulated Sector (NRS) Linkage Auction Scheme, under the sub-sector ' Production of Syngas - leading to coal gasification '. The coal gasification plants of private entities will meet the coal requirement from their allocated coal mines, as well as by coal linkage from CIL mines. So far, no coal linkage has been allocated for coal gasification in Chhattisgarh.

(c): Yes, the Ministry of Coal has approved a financial incentive scheme on 24.01.2024 with an outlay of ₹ 8500 crores to support the coal/  lignite  gasification projects  in  the  country. Details are as under:

- I. Under Category-I, Rs 4,050 crores have been provisioned for Govt PSUs to support projects by providing lump sum grant of Rs 1,350 crores or 15% of capex, whichever is lower.
- II. Under Category-II, Rs 3,850 crores have been provisioned for private sector and Govt PSUs by providing lump sum grant of Rs 1,000 crores or 15% of the capex, whichever is lower.
- III. Under Category-III, Rs 600 crores have been provisioned for demonstration projects (indigenous  technology)  and/  or  small  scale  product  based  gasification  plants  by providing lump sum grant of Rs 100 crores or 15% of capex, whichever is lower.

(d):  Coal  gasification  from  the  projects  approved  under  the  aforesaid  financial  incentive scheme has  the  potential  to  substitute  imports  worth  approx.  Rs.  16,000  crores  of  various chemicals, including ammonium nitrate, natural gas, ethanol etc.

(e): At present, there is no coal gasification proposal under consideration in Singrauli District, Madhya Pradesh.

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