- Why in news
- On 27 July 2026, the Ministry of Coal told the Rajya Sabha that about 22.6 MTPA of coal gasification capacity is operational or under implementation, against the 100 MT by 2030 target. A new ₹37,500 crore scheme was approved on 13 May 2026.
- What it is
- The National Coal Gasification Mission aims to convert domestic coal and lignite into syngas, which is used for synthetic natural gas, chemicals, fertilisers and hydrogen. It is run by the Ministry of Coal. It seeks to cut import dependence and make cleaner use of coal.
- Mission target
- 100 MT of coal gasification capacity by 2030.
- Coal linkage support
- New auction sub-sector for syngas production at power-sector floor price; linkage tenure extended to 30 years.
- Revenue share rebate
- 50% rebate in revenue share for coal used for gasification.
- UCG block auction
- Floor price for UCG coal block auction cut to 2% from 4% for underground mining.
Don’t confuse with Surface vs underground gasification: The ₹37,500 crore scheme covers surface coal/lignite gasification; underground coal gasification (UCG) is supported through a separate framework, pilot exemptions and reduced block auction floor price.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Cuts import dependence for natural gas, fertilisers and chemicals; import substitution of about ₹1.5 lakh crore a year is expected.
- Gives cleaner, value-added use of domestic coal and supports investment and jobs.
Problems
- Only about one project has reached financial closure; others are still obtaining clearances.
- Gasification is capital-intensive and still emits carbon, so climate concerns remain.
Way forward
- Speed up clearances and financial closure for approved projects.
- Pair gasification with carbon capture and build demand for syngas products.
Put in your answer
Import substitution: Commissioning of projects is expected to substitute imports worth about ₹1.5 lakh crore annually.
- 2017Mains GS1 · Q6Discuss whether coal mining is inevitable for development despite environmental harm.
- 2025Mains GS3 · Q6How can India achieve energy independence through clean technology by 2047?
- 2014Mains GS3 · Q15Discuss environmental impacts of coal-fired thermal plants located at coal pitheads.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The National Coal Gasification Mission targets 100 MT of coal gasification capacity by 2030.
- 2.Under the ₹37,500 crore scheme, the financial incentive is up to 20% of total project capex, including land cost.
- 3.Coal used for gasification gets a 25% rebate in revenue share.
Which of the statements given above is/are correct?
True or false?
1 of 5
Statements the way Prelims prints them. Say first, then see the fact.
1.The National Coal Gasification Mission targets 100 MT of coal gasification capacity by 2030.
True. The target is 100 MT by 2030.
2.The ₹8,500 crore scheme provides a financial incentive of 15% of capex.
True. 15% of capex under the ₹8,500 crore scheme.
3.The ₹37,500 crore scheme gives an incentive of up to 20% of total capex, including land cost.
False. It is up to 20% of eligible cost of Plant and Machinery, not total capex.
4.Coal linkage tenure for gasification projects has been extended to 30 years.
True. Linkage tenure is 30 years.
5.For auction of coal blocks for underground coal gasification, the floor price has been reduced to 2% from 4%.
True. Floor price cut from 4% to 2%.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.