This article is authored by Ratul Puri, chairman, Hindustan Power.
When discussing the vision of an energy-secure India, the conversation is often framed around two seemingly opposing forces. On one side is the country’s longstanding dependence on coal, while on the other is its determined push towards clean and renewable energy. However, for a rapidly developing nation of more than 1.4 billion people, the path ahead requires a balanced and pragmatic approach that supports economic expansion while remaining aligned with India’s global climate commitments.
Solar and wind power are continuing to achieve significant milestones, but an important part of the industrial challenge remains unresolved. Agriculture, heavy manufacturing and chemical refining require high-temperature processes and cannot depend entirely on solar power for their operations. At the same time, a large share of clean-energy components is imported, exposing India to trade disputes, geopolitical tensions and fluctuations in global markets.
This is where India’s longstanding coal resource assumes strategic importance. The Union minister for coal and mines has recently highlighted the significance of coal gasification in strengthening energy security, reducing import dependence and supporting industrial development. India possesses nearly 400 billion tonnes of coal reserves, placing it among the countries with the largest coal resources globally. Coal continues to have a substantial role in the country’s energy landscape, contributing around 55% of the energy mix and nearly 74% of electricity generation. With annual coal demand currently close to one billion tonnes, consumption is expected to rise considerably by 2047. At the same time, India continues to make consistent progress towards its net-zero target for 2070.
The government is also encouraging coal gasification, a process that converts coal into syngas. With total investments exceeding ₹85,000 crore, India has set its sights on developing 100 million tonnes of coal gasification capacity by 2030. Through this process, coal is transformed into syngas, which can subsequently be used in the production of cleaner fuels, fertilisers, chemicals and hydrogen. By enabling more efficient utilisation of domestic resources, gasification can contribute to a more sustainable approach to meeting the country’s industrial requirements.
Energy security has become a strategic priority for the Central Government, particularly because approximately 83% of crude oil, 50% of natural gas and over 90% of fertilisers and methanol are imported. According to Ratul Puri Chairman, this makes coal gasification a practical energy-transition pathway capable of addressing the gap between rapid industrialisation and the country’s ambition to move towards a lower-carbon future. Gasification forms part of India’s broader effort to make greater use of its substantial coal reserves while strengthening domestic energy security. The coal gasification programme could potentially help save between ₹60,000 crore and ₹90,000 crore annually through import substitution, while supporting the development of a lower-carbon chemicals and fertiliser ecosystem.
A closer look at the technology helps explain its potential. Coal gasification converts solid coal into synthetic gas, commonly known as syngas. This gas consists of carbon dioxide, carbon monoxide, hydrogen and methane. Unlike conventional combustion, the process involves reacting coal at extremely high temperatures with controlled quantities of steam and oxygen rather than burning it completely.
Syngas can serve as a fundamental input for several value-added industrial applications. Within agriculture, it can be converted into ammonia and subsequently used to manufacture affordable urea fertilisers domestically. In the transport sector, syngas can be transformed into methanol, which can support fuel blending and contribute to lower oil imports. Gasification can also facilitate domestic production of important chemicals required for industries such as paints, plastics and pharmaceuticals.
The technology provides India with an opportunity to utilise its extensive coal reserves while reducing foreign-exchange expenditure on imported natural gas, fertilisers and chemicals. Producing essential commodities within the country can also provide greater stability in input costs and strengthen domestic supply chains against disruptions in international markets. Although coal gasification remains based on a fossil-fuel resource, it can function as an environmental bridge when compared with conventional coal combustion. Because gasification takes place inside a controlled and sealed chemical reactor, sulphur, particulate matter and other byproducts can be captured and managed more effectively than through traditional coal-fired power generation.
Another important advantage is that gasification produces concentrated streams of CO₂, making the technology particularly compatible with Carbon Capture, Utilisation and Storage (CCUS) systems. Captured carbon can either be stored securely in deep underground formations or utilised in commercial applications, including the production of solid carbonates and synthetic fuels. Combining carbon-management technologies with biomass in gasification reactors could further help lower the net carbon footprint associated with heavy industries.
The conversion of coal into higher-value industrial products can help protect India’s critical manufacturing capabilities while advancing the broader objectives of the Make in India initiative. For Ratul Puri, the future significance of coal in India extends well beyond its traditional function of supplying conventional power grids. Its emerging role is increasingly linked to supporting a self-reliant and diversified industrial ecosystem—one that can strengthen energy security, improve competitiveness and steadily move towards a greener position in the global economic landscape.
About Ratul Puri:-
Ratul Puri is the Chairman of Hindustan Power, an integrated power generation company with a strong presence in renewable and transitional energy generation. Over the years, Ratul Puri has been involved in the development of large-scale energy infrastructure projects that support India’s growing power requirements and its transition toward cleaner energy sources.
About Hindustan Power
Hindustan Power is an integrated power generation company with a presence across renewable and transitional energy assets. The company continues to invest in energy infrastructure that supports reliability, sustainability and long-term value creation within India’s evolving power sector.
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