New Delhi, March 23 Coal and Mines Minister G Kishan Reddy informed the Rajya Sabha on Monday that seven coal gasification projects, with an investment of Rs 64,000 crore, will be set up in Maharashtra, Odisha, and West Bengal, and this will help in reducing the import of energy products.
In response to supplementary questions during Question Hour, the minister highlighted that the Modi government has introduced several reforms in the coal sector over the last 12 years.
Reddy said that coal blocks are being allocated through a transparent auction process, without any complaints or allegations.
"There is no shortage of power in the country," he said, adding that 73-74 per cent of electricity is being generated through coal-based thermal plants.
The minister said that 80 per cent of coal production is being supplied to the power sector, and the remaining to other sectors.
Reddy highlighted that India is the second largest producer and consumer of coal.
He said that the country has the fifth largest coal reserve, which could last at least 70 years, and hence the government has increased exploration activities.
Reddy said that the government has also started coal gasification activities.
"Seven projects are about to start. The ground-breaking ceremony for four projects has been initiated. The total investment is Rs 64,000 crore," the minister said, adding that the Centre is providing incentives to these projects.
Out of the seven projects, four are in Maharashtra, two in Odisha, and one in West Bengal.
He said that coal gasification converts coal into syngas, which can be further used to produce methanol, ammonia, urea, hydrogen, synthetic natural gas (SNG), petrochemicals, and liquid fuels.
"Through gasification, we can reduce import dependence," Reddy said, adding that it will save foreign currency exchange and boost employment.
In a written reply, the minister said that out of the 131 coal blocks allocated under the Commercial Coal Mining Policy, 21 coal blocks have obtained mine opening permission, and 12 coal blocks have commenced production as of February 28, 2026.
