7 coal gasification projects worth ₹64,000 cr to be set up: G Kishan Reddy

Coal and Mines Minister G Kishan Reddy on Monday informed the Rajya Sabha that seven coal gasification projects will come up with an investment of ₹64,000 crore in Maharashtra, Odisha and West Bengal and said this will help in reducing imports of energy products.

Replying to supplementary queries during Question Hour, the minister highlighted that the Modi-government during the last 12 years has brought several reforms in the coal sector.

Reddy said the coal blocks are being allotted through a transparent auction process, without any complaints and allegations.

"There is no shortage of power in the country," he said, adding that 73-74 per cent of electricity is being generated through coal-based thermal plants.

 

The minister said 80 per cent of coal production is being supplied to the power sector and the remaining to other sectors.

Reddy highlighted that India is the second largest producer and consumer of coal.

He said the country has the fifth largest coal reserve, which could last at least 70 years, and hence the government has increased exploration activities.

Reddy said the government has also started coal gasification activities.

"Seven projects are about to start. The ground breaking ceremony of four projects have been initiated. Rs 64,000 crore is the total investment," the minister said, adding that the Centre is giving incentives to these projects.

Out of the seven projects, four are in Maharashtra, two in Odisha and one in West Bengal.

He said coal gasification converts coal into syngas, which can be further used to produce methanol, ammonia, urea, hydrogen, synthetic natural gas (SNG), petrochemicals and liquid fuels.

"Through gasification, we can reduce import dependence," Reddy said, adding that it will save foreign currency exchange and boost employment.

In a written reply, the minister said that out of the 131 coal blocks allocated under the Commercial Coal Mining Policy, 21 coal blocks have obtained mine opening permission and 12 coal blocks have commenced production as on February 28, 2026.