Union Cabinet Approves Rs 37,500 Crore Scheme for Promotion of Surface Coal and Lignite Gasification Projects | Current Affairs

The Union Cabinet approved a Rs 37,500 crore Scheme for Promotion of Surface Coal and Lignite Gasification Projects on 13 May 2026. The scheme covers coal and lignite gasification projects.

Background: Coal gasification is a process that converts coal into synthetic gas (syngas) - a mixture of hydrogen, carbon monoxide and carbon dioxide. This syngas can be used as a clean fuel or as a raw material for producing chemicals, fertilisers, methanol and other products. India is the world's second largest coal importer and third largest producer. Coal gasification reduces dependence on imported natural gas and crude oil while also reducing carbon emissions compared to direct coal burning.

Why in News: The Union Cabinet has approved a massive Rs 37,500 crore scheme to promote surface coal and lignite gasification projects in India - a major step towards clean energy transition and reducing import dependence.

Key Points to Remember:

Scheme: Scheme for Promotion of Surface Coal and Lignite Gasification Projects
Approved by: Union Cabinet
Approval date: 13 May 2026
Scheme value: Rs 37,500 crore
Covers: Coal and Lignite Gasification projects
Coal Gasification: Converts coal into syngas (synthetic gas)
Syngas components: Hydrogen, Carbon Monoxide, Carbon Dioxide
Uses of syngas: Fuel, fertilisers, methanol, chemicals
India's coal rank: 3rd largest coal producer in the world
India's coal import rank: 2nd largest coal importer
Relevant Ministry: Ministry of Coal
Coal Minister: G. Kishan Reddy
India's coal gasification target: 100 MT of coal gasification by 2030

Related Static GK:

Lignite: Also called Brown Coal - lower quality than bituminous coal
India's largest coal producing state: Jharkhand
India's largest lignite reserves: Tamil Nadu
Coal India Limited (CIL): India's largest coal mining company - under Ministry of Coal
India's National Coal Gasification Mission: Target to gasify 100 MT of coal by 2030
Clean energy alternatives: Solar, Wind, Hydro, Nuclear