India Accelerates Coal Gas Push and Critical Minerals Strategy
New Delhi, October 23
The Indian government is stepping up efforts to advance coal gasification projects, backed by a planned investment of Rs 46,000 crore. Coal Minister G. Kishan Reddy said on Friday that the initiative would expand domestic output of fertilisers and gas and help reduce reliance on imported supplies.
At the Agrasar Bharat Manch programme held in New Delhi, the minister described coal as a crucial industrial raw material. He said the government is rapidly moving forward with plans to convert coal into synthetic gas, ammonia, urea and methanol.
Key figures on coal
Reddy pointed out that coal continues to meet nearly 55 per cent of India's primary energy requirements. It accounts for 74 per cent of total electricity generation in the country.
The government is targeting the promotion of coal gasification projects on a commercial basis in the near future.
Cabinet clears Rs 37,500 crore scheme
The Union Cabinet has recently sanctioned a scheme with Rs 37,500 crore earmarked to support surface coal gasification projects, the minister said. He described the move as an important milestone in the drive to scale up gasification nationwide.
The national goal is to gasify 10 crore tonnes of coal by 2030. The scheme is expected to contribute to energy security and reduce dependence on imports of LNG, urea, ammonia and methanol.
Critical minerals drive
Alongside coal, Reddy said the government is boosting domestic production of critical minerals. It is also exploring mining assets abroad and working on exploration and extraction of minerals overseas.
He emphasised that these minerals are integral to electric vehicles, telecom equipment, solar energy systems and defence products, making their secure supply a priority.
Argentina and international talks
Reddy stated that exploration is currently under way in Argentina's mines, with talks ongoing with other countries. The government is encouraging Indian businesses to pursue exploration and processing of critical minerals abroad.
In 2025, MECL, a public sector undertaking under the Ministry of Mines, signed a memorandum of understanding with the Catamarca province government of Argentina to deepen cooperation in mineral exploration and resource development.
The minister called Argentina a key partner, citing its vast lithium reserves. Lithium is vital for electric vehicle batteries and renewable energy storage systems.
Rare earth corridors planned
Rare earth element corridors are being developed in Kerala, Tamil Nadu, Andhra Pradesh and Odisha, Reddy said. He expressed optimism that India could become self-reliant in rare earth elements in the coming days.
The overall objective is to enhance availability of critical minerals, build domestic industrial capacity and lower import dependence in strategic sectors.