Coal gasification: Impact of government initiative

Government of India’s policy permitting commercial mining of coal for competition, transparency and private participation in the coal sector would ensure better availability of coal and thus minimising import of coal.

- KC Jain

With the emphasis for clean coal technologies like coal bed methane and coal gasification for utilising coal inefficient and environmentally friendly manner would help meeting commitments made by our Nation towards the Nationally Determined Contribution under UN Framework Convention on Climate Change.

Atma Nirbhar in coal production

India proposes to reduce its dependence on coal import as India’s thermal coal imports rose 12.6 percent to nearly 247.1 million tons in FY20, against domestic production of 730 mt.

Some of thermal coal imports can be reduced by increase in domestic production. However, imports of coking coal, used mainly in the manufacturing of steel, fell marginally as India imported 51.33 mt of coking coal in 2019.

India has the world’s 5th largest coal reserve (326 billion tons as on March 2019). So, opening of coal sector for commercial mining will help in increasing domestic coal production and by this, considerable amount of foreign exchange can be saved.

It will also increase investment through FDI as well as latest technology in the field of clean- coal technology such as coal gasification, carbon capture and utilization can be game-changers.

An economy based on clean-coal technology can directly increase India’s GDP and reduce imports.

India will invest around ₹20,000 crores in four major projects for conversion of 100 mt of coal into gas by 2030 to be used for domestic cooking, transportation, urea, steel and fertiliser industries.

Commercial mining for gasification