West Asia crisis pushes India towards coal gasification for security

The West Asia crisis has exposed India's import dependence, accelerating its push for coal gasification. Coal Secretary Vikram Dev Dutt said this move is crucial for energy security, industrial self-reliance, and shielding the economy from shocks.

The ongoing crisis in West Asia has fundamentally altered global energy and commodity supply chains, exposing the risks of India's heavy dependence on imports and accelerating the country's push towards coal gasification as a strategic pillar of energy security and industrial self-reliance.

Urgency Driven by Geopolitical Disruptions

Addressing a roadshow to promote Surface Coal/Lignite Gasification, Coal Secretary Vikram Dev Dutt said the geopolitical disruptions have underlined the urgency of building domestic capabilities to shield the Indian economy from external shocks. Referring to the conflict in West Asia, Dutt said it has "fundamentally altered global energy and commodity supply chains, exposing vulnerabilities arising from India's import dependence."

"If you look at our total import bill across all the substitutable products which are possible through coal gasification -- natural gas, urea, ammonia, coking coal and methanol -- in the financial year 2025, the total quantum of these imports stood at about Rs 2.77 lakh crore and that was at prices pre the West Asia conflict," he said.

He added that the price escalation witnessed in March and April after the conflict had increased stress across sectors of the economy, highlighting the need for India to strengthen domestic energy and industrial supply chains.

A Pathway to Reducing Import Dependence

Dutt said coal gasification offers India a long-term pathway to reduce strategic import dependence by converting domestic coal reserves into products such as natural gas, ammonia, methanol, dimethyl ether (DME), hydrogen and fertiliser feedstock.

"The question is not about whether we use coal, it's about how intelligently we use coal. Coal gasification is the answer," he said.

According to the Coal Secretary, projects approved under the government's first incentive scheme for coal gasification have the potential to substitute nearly Rs 20,000 crore worth of foreign exchange outflow through domestically produced gasification products.

Strengthening the 'Atmanirbhar Bharat' Vision

He said the initiative is not merely about energy security, but also about strengthening industrial resilience, domestic manufacturing and supply-chain stability under the Atmanirbhar Bharat vision.

"Today we stand at a pivotal moment as all of you know, where as a country we are turning to our own earth, our own resources and our own ingenuity to shape the next chapter of our industrial transformation, strategic self-reliance and national resilience based on the bedrock of Atmanirbhar Bharat," Dutt said.

Leveraging Domestic Resources and Technology

India currently possesses the world's fifth-largest coal reserves, while coal continues to contribute nearly 55 per cent of the country's energy mix, making coal gasification strategically significant for the foreseeable future.

Dutt noted that coal gasification has evolved into a commercially proven industrial technology globally, with different technological pathways suited for varying coal characteristics and end-use products.

He said India's high-ash coal requires technology choices aligned with feedstock quality, project economics and downstream applications.

"At the same time, we are committed to encouraging the development of indigenous gasification technologies tailored in India and operated at pilot scale by BHEL and others so that India not only adopts the technology but masters it," he said.

Government Incentives and Call to Action

The Coal Secretary also highlighted the National Coal Gasification Mission launched in 2021 and the Union Cabinet-approved Rs 37,500 crore financial incentive scheme aimed at accelerating investments and reducing risks for early project developers.

"The opportunity is unprecedented, the need is urgent, the support is generous and the time is now," he said. (ANI)

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