Developing a strong domestic coal gasification ecosystem has been identified as crucial for India to withstand global energy shocks and achieve economic self-reliance under the Atmanirbhar Bharat framework.

Experts emphasised that coal gasification is not merely an industrial opportunity but a strategic imperative for energy security, import substitution, and long-term resilience.

Coal gasification involves transforming dry fuel into syngas, which can be used as an alternative fuel and as feedstock for fertilisers, petrochemicals, and other industrial products. This process offers India a pathway to substitute imports of LNG, LPG, methanol, ammonia, urea, coking coal, and chemical feedstocks, which currently amount to nearly ₹2.77 lakh crore annually. The potential for import substitution is vast, and experts argue that without such a domestic ecosystem, India cannot build resilience against global energy shocks.

Experts have emphasised that developing a robust domestic coal gasification ecosystem is vital for India to build long-term resilience against global energy shocks and achieve economic self-reliance under the Atmanirbhar Bharat framework.

The process of coal gasification, which converts dry fuel into synthetic gas or syngas, provides an alternative fuel source while reducing carbon emissions. This technology is increasingly seen as a strategic safeguard in the current geopolitical environment.

The discussion gained prominence after Prime Minister Narendra Modi urged citizens to save fuel and reduce reliance on imported products in order to preserve foreign exchange reserves amid global supply chain disruptions caused by the ongoing conflict in West Asia. The appeal underlined the urgency of diversifying India’s energy sources and reducing external vulnerabilities.

Balasaheb Darade, Founder and Managing Director of New Era Cleantech Solutions, highlighted that without a large-scale domestic coal gasification ecosystem, India cannot achieve true resilience against global energy shocks.

He described coal gasification as not merely an industrial opportunity but a strategic imperative for energy security, import substitution, and economic independence. His company is currently developing a 5 million metric tonnes per annum coal gasification project in Chandrapur, Maharashtra, which is expected to contribute significantly to this vision.

Darade further noted that coal gasification could become one of India’s largest industrial and economic transformation opportunities over the next two decades. He pointed out that India imports products worth nearly ₹2.77 lakh crore annually, including LNG, LPG, methanol, ammonia, urea, coking coal, and chemical feedstocks. Many of these commodities could be produced domestically through coal gasification, thereby reducing dependence on volatile global markets.

China’s example was cited as a case study in resilience. With nearly 350 million tonnes of coal gasification capacity, China has demonstrated the strategic importance of this sector during the West Asia crisis.

While several countries faced LNG shortages, fertiliser supply disruptions, price spikes, and force majeure risks, China’s large coal-to-chemicals ecosystem acted as a shield, maintaining supply stability and reducing reliance on imports.

Kapil Bansal, Partner at EY-Parthenon, observed that LNG shortages and fertiliser supply disruptions have exposed the vulnerability of economies dependent on imports. He argued that coal gasification offers India a strategic pathway to strengthen energy security, ensure fertiliser resilience, and stabilise industrial supply chains by enabling domestic production of critical fuels and feedstocks.

Pavan Kaushik, corporate advisor and co-founder of Gurukshetra Consultancy, stressed that India’s push towards coal gasification is not simply an industrial policy but a national safeguard.

With India importing nearly 89 per cent of its crude oil requirements, reducing external energy dependence has become critical for long-term economic resilience.

He underscored that the government’s target of achieving 100 million tonnes of coal gasification by 2030 reflects a clear vision to strengthen energy security, support domestic manufacturing, and ease pressure on foreign exchange reserves.

Kaushik also emphasised that citizens increasingly recognise the importance of evaluating nation-building measures through long-term strategic outcomes rather than short-term gains. He warned that global conflicts, trade disruptions, and currency volatility have shown how strategic vulnerabilities can directly impact economic growth and national stability.

Coal gasification, therefore, represents a long-term vision to utilise domestic resources for critical sectors such as energy, fertilisers, petrochemicals, and manufacturing.

India’s coal gasification drive is ultimately about preparing the nation to remain economically strong, strategically independent, and globally competitive for decades to come. By leveraging domestic coal reserves in innovative ways, India aims to transform its energy landscape and secure its future against external shocks.

PTI