Modi Government Approves Major Coal Gasification Initiative Amid Global Energy Challenges

In response to current global challenges and the emerging crisis in gas supply, the Modi administration has taken a significant step by leveraging the country's vast coal reserves to enhance energy self-sufficiency. During a cabinet meeting chaired by Prime Minister Narendra Modi, an ambitious plan for coal gasification was approved. The government believes that large-scale production of gas from coal within the next four to five years will enable India to achieve self-reliance in gas, alleviating the pressures of global supply challenges and reducing import dependency. Information regarding the decisions made today was shared by Union Minister for Information and Broadcasting Ashwini Vaishnaw at a press conference.

The cabinet has sanctioned a plan worth ₹37,500 crores to promote surface coal and lignite gasification projects. This initiative aims to accelerate the national target of gasifying 10 million tons of coal by 2030, with a specific goal of approximately 7.5 million tons of coal and lignite gasification. The government anticipates that this will bolster the country's energy security and reduce reliance on imports of products like LNG, urea, ammonia, and methanol. Under this plan, incentives of up to 20% of the plant and machinery costs will be provided, with a cap of ₹5,000 crores for any single project. Additionally, the coal supply period for gasification projects will be extended to 30 years to ensure long-term stability for investors. This initiative is expected to attract an investment of around ₹2.5 to ₹3 lakh crores and create approximately 50,000 direct and indirect jobs. Furthermore, it is projected that states will receive about ₹6,300 crores in revenue annually.

During the cabinet meeting, an increase in the minimum support price for 14 kharif crops for the 2026-27 marketing season was also approved. The government stated that this move aims to ensure farmers receive a profitable price for their produce. The highest increase was noted for sunflower seeds, which saw a rise of ₹622 per quintal. Other crops like cotton, ramtil, and til also experienced significant increases. The minimum support price for rice has been raised to ₹2,441 per quintal, while the support prices for arhar, moong, and urad have been set at ₹8,450, ₹8,780, and ₹8,200 per quintal, respectively. The government emphasized that this aligns with its commitment to ensure farmers receive at least 1.5 times the cost of production, as promised in the 2018-19 budget.

The Economic Affairs Committee of the cabinet has also approved a semi high-speed double rail line project from Sarkhej in Ahmedabad to Dholera, with an estimated cost of ₹20,667 crores, expected to be completed by 2030-31. This will be India's first semi high-speed project utilizing indigenous technology, establishing fast connectivity between Ahmedabad, the Dholera Special Investment Region, the upcoming Dholera Airport, and the Lothal National Maritime Heritage Complex. This new rail line is anticipated to reduce travel time and facilitate daily commutes, benefiting approximately 284 villages and around five lakh people in Gujarat. The government noted that the environmentally friendly and energy-efficient nature of rail transport will help reduce oil imports and carbon emissions, with an estimated reduction of two crore kilograms of carbon emissions, equivalent to planting nearly one million trees.

Additionally, the cabinet has approved the upgrade and modernization of Nagpur International Airport, which will be executed under a public-private partnership model. The decision includes extending the lease period of the land from the Airports Authority of India to allow the airport to be handed over to a private partner for 30 years. The government believes this will aid in developing Nagpur as a regional aviation hub. Under the new arrangement, Dr. Babasaheb Ambedkar International Airport in Nagpur will be equipped with world-class facilities, increasing its capacity to handle three crore passengers annually, while also enhancing cargo services to boost economic activities in the Vidarbha region.