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5 September 2026

Coal gasification scheme uptake

This is a major national policy involving a significant financial outlay aimed at energy security, industrial indigenization, and economic development, making it a high-probability topic for UPSC Mains.

1 min read 2 questions 2 prelims

Notes

  • Government launched a ₹37,500-crore financial incentive scheme to promote surface coal and lignite gasification projects.
  • The scheme aims to gasify 75 million tonnes of coal and lignite.
  • Coal gasification converts dry fuel into synthetic gas (syngas), which serves as an alternative fuel.
  • Syngas is used to produce methanol, fertilisers, hydrogen, and chemicals.
  • Objectives include boosting clean energy, reducing dependence on imports (LNG, urea, methanol), and insulating the economy from global price volatility.
  • The Ministry of Coal noted that the scale of projects requires significant time for the preparation of Project Feasibility Reports (PFRs).
  • The scheme features rolling application rounds every two months to encourage industry participation.

Questions

  1. Discuss the strategic significance of coal gasification in India's energy security framework. How does the indigenization of syngas production contribute to reducing import dependency and mitigating global supply chain risks? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. Analyze the challenges in the adoption of large-scale coal gasification projects in India. Evaluate the role of government financial incentive schemes in overcoming capital-intensive barriers and promoting sustainable industrial practices in the energy sector. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. What is the primary product of the coal gasification process as mentioned in the government scheme?

  2. Which of the following is a stated objective of the government's coal gasification incentive scheme?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-09-05/coal-gasification-scheme-uptake