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Government Opens Coal Gasification Scheme to Private Sector with 30-Year Coal Linkage Support

Ministry of Coal

Minister of State for Coal and Mines Satish Chandra Dubey on Thursday said the government’s coal gasification scheme is fully open to private sector participation and assured investors of long-term coal supply support to encourage large-scale investment in the sector.

Speaking at a coal gasification roadshow attended by Union Coal and Mines Minister G. Kishan Reddy, along with industry representatives, public sector companies, startups, researchers, and state government officials, Dubey said the scheme has been designed to create a stable foundation for future investments.

“This gasification scheme is completely open. Not only government companies, but private companies and the private sector can also participate independently or through joint ventures,” Dubey said.

He added that the government is prepared to support all stakeholders interested in expanding the sector. “Anyone can also come forward by forming a consortium; the government wholeheartedly welcomes you,” he said.

Dubey also said the government would remain technology-neutral under the scheme and support the most efficient and cost-effective technologies suited to Indian coal resources.

“In this scheme, we are not bound to any one specific technology. Whichever technique performs best and most cost-effectively on Indian coal, we will promote that technology,” he said.

He also referred to technologies being developed under the Make in India initiative.

The minister emphasised the importance of establishing coal gasification projects near coal production sites to reduce transportation costs and lower pollution levels.

“Wherever we produce coal, if we carry out gasification there itself, we can also control pollution to some extent,” he said.

Addressing concerns around raw material availability, Dubey assured investors that approved projects would receive long-term coal linkage support from the government.

“We have ensured that, along with your project, you will receive a 30-year coal linkage. The government will provide it, and the coal ministry will provide it,” he said.

He further clarified that incentives offered under the coal gasification scheme would not reduce or interfere with benefits available under commercial coal mining policies.

“Whatever incentives you receive under this scheme will not adversely affect the benefits or rights available under commercial coal mining or any other entitlements,” he added.

Calling for closer collaboration between industry and policymakers, Dubey said achieving Prime Minister Narendra Modi’s vision of an “Atmanirbhar Bharat” and a developed India by 2047 would require coordinated efforts across sectors.

“For this, all of us must together build a strong ecosystem where government policies and entrepreneurs work hand in hand,” he said.

The minister concluded by urging industry participants to actively contribute to the coal gasification initiative and support the growth of India’s energy sector.

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