Why India Is Turning Coal Into Gas | Big Energy Plan Explained

Added: 2026-05-20

[00:00:00]India has approved a big rupees [music] 37,500 crore push to turn coal into gas. And on the surface, that may sound surprising.

[00:00:09][music] After all, coal is usually seen as something we burn for electricity.

[00:00:13]But this new plan is not about burning coal in the traditional way. It is about changing coal into a useful gas-like [music] fuel and industrial material. So India can reduce imports and use its own resources better. This process is called coal gasification. In very simple terms, coal is heated at very high temperature with limited oxygen and steam. Instead of catching fire and turning into ash and smoke, the coal goes through a chemical change and produces a gas called syngas. [music] This syngas mainly contains carbon monoxide and hydrogen, and that makes it very valuable for industry. For this one gas, India can make [music] synthetic natural gas, fertilizers, methanol, hydrogen, and other chemicals. [music] That means coal can move beyond just power generation and become a raw material for a several sectors. [music] So why is India doing this now? The biggest reason is import dependence.

[00:01:07]India spends a huge amount of money every year importing things like LNG, methanol, ammonia, urea, and petrochemical feedstock. These are essential for industries, fertilizers, and energy supply. When global prices rise or supply chains [music] are disrupted, India feels the pressure directly. By using domestic coal to make some of these products at home, the government hopes to cut import bills and improve [music] supply security. The second reason is energy security. India has very large coal reserves, so the government wants to make better use of what is already available inside the country. Instead of only using coal for direct burning, coal gasification allows [music] India to turn it into a more flexible form that can be used in multiple industries. In other words, the idea is not just to consume coal, but to upgrade coal [music] into something more useful. The third reason is industrial strategy. [music] Some sectors like fertilizers and chemicals need steady raw material supply. If India can produce syngas, [music] then convert it into ammonia, urea, methanol, and similar products, [music] it can support manufacturing and reduce dependency on foreign suppliers. This is why the government is presenting this as a long-term industrial solution, not just an energy project. [music] So, this is not a completely new technology.

[00:02:25]Other countries have already used coal gasification for years. Take China as an example. China has been one of the biggest example, especially in making chemicals and synthetic fuels from coal.

[00:02:35]South Africa has also used coal-based gas [music] and liquid fuel technologies for a long time. In some other countries, too, coal gasification [music] has been explored for power, chemicals, and fuel production. So, India [music] is not starting from zero. It is trying to scale up a technology that has already been used elsewhere. And at the same time, this should not [music] be confused with a green energy project.

[00:02:57]Coal gasification is still coal-based.

[00:03:00]So, it is not a fully clean solution, but compared [music] to direct burning, it can be more efficient, and it may also make carbon capture easier [music] at certain stages. So, the government seems to be treating it as a bridge strategy, [music] a way to reduce imports and support industry while India continues expanding renewables. [music] So, in short, India's idea is simple. Turn domestic coal into gas, then [music] turn that gas into fertilizers, chemicals, and fuel. So, the country can spend less on imports and [music] depend less on global supply shocks. That is why this rupees 37,500 crore plan matters. It is not just about coal, it is about [music] using coal in a smarter way to support India's energy security, manufacturing needs, and long-term self-reliance. So, that's all.

[00:03:44]Now, tell us your views in the comments below, and thanks [music] for watching Lokmat Times.

[00:04:00]>> Woo!