Centre Encourages States to Implement Coal Gasification Incentives Following Odisha and Maharashtra Initiatives

India's central government is encouraging states to adopt coal gasification incentives following proactive steps by Odisha and Maharashtra. Anticipated benefits include reduced import reliance and strengthened energy security. The Union Cabinet has approved a significant financial outlay to promote coal gasification projects nationwide.

The Indian government is actively urging various states to implement incentives for coal gasification projects, citing successful schemes already introduced by Odisha and Maharashtra. The Centre believes these initiatives will foster industry engagement and support the broader national goal of energy independence.

During a roadshow dedicated to coal and lignite gasification, Coal Secretary Vikram Dev Dutt emphasized the importance of state-level incentives. He noted that while the central scheme covers capital expenditures, state packages could significantly lower operating costs for these projects. Chhattisgarh and Andhra Pradesh are reportedly in advanced discussions to launch their schemes.

Coal and Mines Minister G Kishan Reddy confirmed ongoing talks with states like Chhattisgarh, Uttar Pradesh, and others. He stressed that the Centre is urging these states to prioritize policies supporting coal gasification, aligning with the country's strategic goals.

The Union Cabinet's approval of a substantial Rs 37,500-crore plan reflects the government's commitment to enhancing coal gasification, aiming to boost clean energy output while curbing import dependencies and mitigating global supply chain risks.