Coal Industry

State-owned Coal India plans to set up coal-to-syngas production units either at pithead locations or adjacent to user industries such as fertiliser units, direct-reduced iron and gas-based power plants amid disruption in gas supplies due to the West Asia conflict, sources said. Coal India Ltd (CIL), which accounts for over 80 per cent of domestic coal output, has already initiated steps to develop such coal-to-syngas facilities. In line with the National Mission on Coal Gasification and the government's vision to enhance domestic chemical and feedstock security, CIL intends to set up coal-to-syn-gas facilities to cater to the market demand for syn-gas in gas-based power plants/DRI or fertiliser plants, sources said. The company plans to develop such facilities either on Build-Own-Operate (BOO) or Build-Operate-Maintain (BOM) basis, with syngas to be produced from coal by developers or consortia, they said. Syngas serves as a versatile feedstock for the production of clean fuels, .

India produced more than 1 billion tonnes of coal in FY25 and possesses one of the world's largest coal reserves

Rising production, ageing workforces, and rapid automation are pushing India's industrial companies towards leaner, productivity-driven workforce structures

Underground Coal Gasification (UCG), where coal is converted in situ without mining, is being piloted in Jharkhand

Incentive scheme aims to reduce import dependence on fuels and industrial feedstock while boosting domestic coal-to-chemicals capacity amid West Asia tensions

IEA flags India among top coal mine methane emitters, highlighting gaps in reporting and the urgent need for cost-effective emission reduction measures

India's economic calendar this week will track factory and services activity alongside a major energy policy push, offering key signals on growth, inflation and industrial strategy

The Cabinet is likely to approve soon a Rs 37,500 crore incentive scheme to promote coal gasification projects, aimed at boosting clean energy production and reducing import dependence, sources said. The coal ministry has already prepared a Cabinet note on the scheme to promote coal gasification projects, with a financial outlay of Rs 37,500 crore, they said. The proposed scheme is aimed at accelerating surface coal and lignite gasification projects across the country, promoting self reliance by reducing import dependence on critical commodities such as LNG, urea, ammonium nitrate, ammonia, coking coal via DRI, methanol and DME, while enabling enhanced utilisation of domestic coal and lignite resources for fuels and chemicals production, and supporting the national target of 100 million tonnes coal gasification capacity by 2030. This is a unified scheme with no categories, and the maximum financial assistance for a single project is Rs 3,000 crore, they said. In the earlier financi

Fertiliser, coal, crude oil and electricity drag index; FY26 growth slows to a five-year low as input shortages and weak output weigh on industrial momentum

MCX to launch coal exchange subsidiary with full ownership initially, aiming to build a transparent and technology-driven market platform for coal trading in India

Seventeen coal blocks, including reoffered mines, put up for auction as Centre looks to enhance domestic production and strengthen energy security

State-owned Coal India Limited is absorbing rising input costs to protect consumers from higher coal prices, even as expenses for key inputs, such as explosives and industrial diesel, have surged sharply following the West Asia conflict. The company said it has chosen not to pass on the increase, warning that doing so could trigger a cascading impact across sectors reliant on coal. It is also compensating contractors operating in its mines for higher diesel costs. Prices of ammonium nitrate - a key component accounting for about 60 per cent of explosives used in opencast mining - have risen 44 per cent to Rs 72,750 per tonne as of April 1 from pre-war levels. This has pushed up the average cost of explosives by around 26 per cent to nearly Rs 49,800 per tonne by end-March. Coal India's subsidiaries consume about 0.9 million tonnes of explosives annually. This entire cost is being absorbed by Coal India, the company said. Diesel prices have also surged, rising roughly 54 per cent t

CIL said that any pass-through of these rising input costs could have a cascading effect on the economy, particularly on power and industrial users dependent on coal

New norms aim to boost syngas production from coal and lignite through gasification technology, while ensuring minimal surface impact, scientific planning, and regulatory compliance

Operations stalled since April 2 at ABOCP mine in Dhanbad as BCCL alleges illegal disruption by local persons and files FIR; production and dispatch activities remain halted

State-owned Coal India Ltd plans to offer 25.62 million tonnes of coal through online auction in the current month, a move expected to mitigate the impact of energy supply shocks on industries amid the West Asia crisis. The disruptions in LNG, LPG and crude oil supplies from the Middle East have increased demand for coal, driving up its import prices. Coal India had offered 32.532 million tonnes of coal through e-auction in March against 20.5 million tonnes in February this year. The state-run coal producer plans to offer coal through the Single Window Mode Agnostic (SWMA) auction. SWMA auction is a unified, simplified e-auction system launched in 2022 to consolidate multiple existing auction windows (Spot, Special Spot, Forward) into a single platform, making coal procurement easier, more transparent, and market-driven for all buyers. According to Coal India Ltd's SWMA auction calender, Coal India subsidiary Western Coalfields Ltd (WCL) plans to put on offer 2 million tonnes (MT),

BCGCL and MCL sign a land agreement for India's first indigenous coal gasification project in Odisha, aimed at boosting energy security and reducing import dependence

Coal India will invest Rs 3,300 crore to set up eight coking coal washeries by FY2030, aiming to improve coal quality, reduce imports and support domestic steel production

The Power Ministry is believed to have directed imported coal-based thermal plants to operate at full capacity for three months from April 1, to avoid any electricity shortage amid the estimated peak demand of 270GW during this summer. Sources said that in letters sent to imported coal-based plants in the country, the power ministry invoked Section 11 of the Electricity Act, asking them to run at full capacity. The step has been taken to ensure optimal power availability, considering the prevailing demand-supply scenario and the expected rise in electricity demand in the coming months, according to the letter. The ministry has estimated the peak power demand to be over 270GW during this summer season (April onwards). However, during last summer (April 2025 onwards), the peak power demand was 242.77 GW in June, 2025. According to government estimates, peak power demand was expected to touch 277 GW in the summer of 2025. The peak power demand touched an all-time high of about 250 G

Union Minister for coal and mines G Kishan Reddy on Sunday said coal gasification will play an important role in strengthening India's energy security, reducing imports and supporting industrial growth. This push has gained urgency amid the West Asia conflict, which has driven up global energy prices. He was speaking during the Bharat Electricity Summit 2026. Describing coal gasification as a key transformative technology, he said it converts coal into Syngas, which can be further used to produce cleaner fuels, chemicals, fertilizers, and hydrogen. This approach enables more efficient and sustainable use of domestic resources while enhancing economic resilience. He also pointed out India's dependence on imports, approximately 83 per cent of crude oil, 50 per cent of natural gas, and over 90 per cent of methanol and fertilizers, making energy security a strategic priority. To promote adoption, the Centre has launched the National Coal Gasification Mission with a target of 100 mill