MP to Study Coal Gasification Policy

Bhopal, Jun 1 (PTI) The Madhya Pradesh government on Monday decided to conduct a study and formulate a policy with the aim of tapping the state's vast coal reserves and capitalising on the Centre's decision to prioritise coal gasification work in the country, officials said.

Coal gasification technology plays a vital role in power generation, chemical synthesis, and the energy sector, they said.

The Union government has directed that coal gasification work be prioritized in the country, the officials said, adding Madhya Pradesh has vast potential for coal gasification.

"Encouraging the coal gasification sector by leveraging the state's available coal resources and industrial infrastructure will significantly contribute to strengthening the state's economy and creating employment," a note issued by Additional Chief Secretary (ACS) to Chief Minister and Energy Department Neeraj Mandloi said.

The Department of Industrial Policy and Investment Promotion has been designated as the nodal department for this work, which includes conducting a study and analysis of the coal gasification policy currently in effect in the country and formulation of a coal gasification policy for Madhya Pradesh, he said.

The policy should be prepared on priority and presented to the council of ministers within the stipulated timeframe, Mandloi directed officials.

Referring to the Centre's initiative on the issue and background note, Mandloi said, "Coal gasification is a process that converts coal into a synthetic gas (syngas) composed primarily of carbon monoxide and hydrogen. This technology has significant applications in power generation, chemical synthesis, and energy production."


The Narendra Modi government has launched a comprehensive policy framework to promote coal gasification as a strategic initiative for energy security and economic development. The Centre recently approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects with a financial outlay of Rs. 37,500 crore.

"This represents a landmark decision in India's energy policy and demonstrates the government's commitment to leveraging coal gasification technology for economic growth and energy independence," the official said.

MP, being one of India's major coal-producing states with significant coal reserves and an established industrial base, is uniquely positioned to benefit from the coal gasification policy, he added.

The state has abundant coal reserves and mining infrastructure, existing industrial and power generation facilities, a skilled workforce and technical expertise, a strategic geographic location with access to industrial zones, an opportunity to develop downstream industries based on syngas products and potential for economic growth and employment generation through coal gasification projects.

The Union government launched the National Coal Gasification Mission (2021) with an ambitious target to gasify 100 MT of coal by 2030, signalling the strategic importance accorded to this technology.

Initially, (January 2024) a scheme worth Rs. 8,500 crore was approved to promote coal gasification projects. Under this scheme, eight projects worth Rs. 6,233 crore are currently under implementation.

The current (May 2026) Rs. 37,500 crore scheme represents a significant expansion and acceleration of India's coal gasification programme, building on the success of previous initiatives, the official added.