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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
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
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),
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
The government on Thursday asserted that India's domestic coal production is steadily matching consumer demands, with state-owned Coal India Ltd (CIL) implementing robust measures to secure uninterrupted dry fuel for all sectors, amid escalating tensions in West Asia. As a proactive step, CIL, which accounts for over 80 per cent of domestic coal output, has planned 29 e-auctions in the current month, offering about 23.56 million tonnes (MT) of coal. "Out of these 29 auctions, 5 auctions have already been conducted since March 12, 2026, wherein 73.1 lakh tonnes of coal were offered, and 31.96 lakh tonnes of coal have been booked, indicating adequacy of coal offered in the e-auctions," the coal ministry said in a statement. In addition to this, CIL has also taken necessary action to ensure coal availability to the small, medium and other consumers through the State Nominated Agencies (SNAs) route and requested the State governments to provide the additional coal requirement, which can
Amid escalating tensions in West Asia threatening global energy supplies, the government on Wednesday said it is fully prepared to meet any unprecedented surge in coal demand, with overall coal stocks at about 210 million tonne -- adequate for around 88 days. This year, coal production and supply have outpaced consumption, leading to record-high stocks at thermal power plants and coal mines. Supplies to the non-regulated sector are up nearly 14 per cent over the previous year. Pithead coal stocks at mines of Coal India Ltd (CIL) stood at 106.78 million tonne (MT) on April 1, 2025, rising to 121.39 MT as of March 9 this year. Further, there is around 6.07 MT of coal at the mines of Singareni Collieries Company Limited (SCCL), another 15.12 MT at captive, commercial mines, and about 14 MT in transit, totalling 156.58 MT, the highest ever. This stock is in addition to the coal which is already available at power plants, which is around 54.05 MT as on March 9, 2026, adequate for near
State-owned Coal India Ltd (CIL) on Thursday announced a major milestone, having despatched about 375 million tonnes of coal through the rail mode, all sampled by third-party sampling agencies (TPSAs), till December of the current fiscal. The achievement underscores CIL's enhanced focus on quality assurance and supply chain reliability amid rising domestic demand for coal, which powers a chunk of the country's electricity generation. This volume highlights the success of third-party sampling protocols mandated by the government to ensure unbiased quality checks, bring down disputes with power plants and check pilferage. "Till December FY 2026, CIL has despatched about 375 million tonnes (MTs) of coal through rail mode which was sampled by TPSAs," the company said in a filing to BSE. Of this, half of the despatches were made through silos where the installed auto mechanical samplers ensured high standards of coal quality process control. The coal behemoth is aiming to increase this