Coal Gasification Gets Big Budget Lift As Govt Eyes ₹35,000 Cr Incentives | Budget 2026

Ahead of Budget 2026, sources say the Coal Ministry has proposed a massive ₹35,000 crore incentive package for coal gasification, nearly quadrupling the existing ₹8,500 crore corpus announced in 2024. The proposed viability gap funding aims to support India’s transition towards cleaner coal and could benefit major PSUs and private players including Coal India, BHEL, GAIL, NTPC and NLC. The move is expected to help reduce annual imports by up to $15 billion and support India’s target of 100 million tonnes of coal gasification by 2030, subject to cabinet approval.