No longer a dirty fuel: Why India is backing coal to survive the global gas crisis
West Asia crisis has made coal become a key energy transition fuel with focus on coal gasification. It has to be seen how will it impact India’s carbon emissions trajectory.
- Jun 7, 2026,
- Updated Jun 7, 2026 2:44 PM IST
Coal is no longer a dirty fuel. Instead, as a transition fuel via coal gasification, it is now central to the country’s plans to meet the growing industrial energy demand.
The shift to coal as a bridge fuel has been fast for India Inc, especially, where immediate electrification is difficult, as industrial operations have been hit by a shortage of Liquefied Natural Gas (LNG) amid the West Asia conflict.
For instance, Jindal Steel recently switched to synthesis gas (syngas) through coal gasification due to a shortage of LNG supplies for its steel-making units. UltraTech is increasing the share of domestic coal in its energy mix in its cement plants. Mahindra & Mahindra is looking for electrification of fossil fuel processes across its ecosystem.
Boosting these efforts, the Union government recently announced a ₹37,500 crore incentive scheme for coal gasification projects aimed at cutting India’s ₹2.77 lakh crore import dependence on LNG, ammonia, methanol, fertilisers and other industrial feedstocks.
Of course, there is a trade-off here. India’s carbon emissions will increase in a transition towards fossil-based power for energy security. This comes at a time when India has upped its climate action goals, pledging to achieve 60% of installed power capacity from non-fossil fuels by 2035.
As part of its submission to the United Nations in March this year, the country committed to reducing emissions per unit of GDP by 47% by 2035 from 2005 levels.
Coal gasification, one of the solutions being touted now to offset the crude vulnerabilities, produces more carbon dioxide than a conventional coal-powered thermal power plant, according to an assessment by the think tank Centre for Science and Environment (CSE).
“It remains a carbon-intensive pathway. Without carbon capture, utilisation and storage (CCUS), coal gasification can lead to substantial CO emissions and lock in high-carbon infrastructure,” says Parth Kumar, Programme Manager Sustainable Industrialisation Unit, CSE.
After all, India holds one of the world’s largest coal reserves, estimated at around 401 billion tonnes, along with nearly 47 billion tonnes of lignite reserves. Union Minister Ashwani Vaishnaw has said India’s coal reserves were sufficient for nearly 200 years, making coal gasification an important pillar of long-term energy resilience.
Coal is no longer a dirty fuel. Instead, as a transition fuel via coal gasification, it is now central to the country’s plans to meet the growing industrial energy demand.
The shift to coal as a bridge fuel has been fast for India Inc, especially, where immediate electrification is difficult, as industrial operations have been hit by a shortage of Liquefied Natural Gas (LNG) amid the West Asia conflict.
For instance, Jindal Steel recently switched to synthesis gas (syngas) through coal gasification due to a shortage of LNG supplies for its steel-making units. UltraTech is increasing the share of domestic coal in its energy mix in its cement plants. Mahindra & Mahindra is looking for electrification of fossil fuel processes across its ecosystem.
Boosting these efforts, the Union government recently announced a ₹37,500 crore incentive scheme for coal gasification projects aimed at cutting India’s ₹2.77 lakh crore import dependence on LNG, ammonia, methanol, fertilisers and other industrial feedstocks.
Of course, there is a trade-off here. India’s carbon emissions will increase in a transition towards fossil-based power for energy security. This comes at a time when India has upped its climate action goals, pledging to achieve 60% of installed power capacity from non-fossil fuels by 2035.
As part of its submission to the United Nations in March this year, the country committed to reducing emissions per unit of GDP by 47% by 2035 from 2005 levels.
Coal gasification, one of the solutions being touted now to offset the crude vulnerabilities, produces more carbon dioxide than a conventional coal-powered thermal power plant, according to an assessment by the think tank Centre for Science and Environment (CSE).
“It remains a carbon-intensive pathway. Without carbon capture, utilisation and storage (CCUS), coal gasification can lead to substantial CO emissions and lock in high-carbon infrastructure,” says Parth Kumar, Programme Manager Sustainable Industrialisation Unit, CSE.
After all, India holds one of the world’s largest coal reserves, estimated at around 401 billion tonnes, along with nearly 47 billion tonnes of lignite reserves. Union Minister Ashwani Vaishnaw has said India’s coal reserves were sufficient for nearly 200 years, making coal gasification an important pillar of long-term energy resilience.