India's Coal Gasification Push Faces Financing and Cost Hurdles

what happened

Industry leaders at Gasification India 2026 in New Delhi said India's goal of gasifying 100 million tonnes of coal a year depends on project execution, dependable feedstock and long-term purchase agreements. According to Moody's, officials, coal producers, developers and investors discussed these issues at the 17th edition of the conference, held on 22–23 October.

Amrit Lal Meena, chairman of the Gasification Technologies & Research Council of India, named four priorities: long-term financing, assured offtake, reliable feedstock and faster implementation. He called for credit guarantees, repayment moratoria and timely payment of incentives.

Peeyush Kumar, managing director of BCGCL, the Coal India and BHEL joint venture, said construction has begun on three gasification projects involving Coal India, GAIL India and BPCL. He added that controlling costs and reducing the ash content of Indian coal remain key challenges.

why it matters

The story matters mainly for Indian coal producers and buyers of gas and fertiliser. High costs and financing difficulties could slow projects, so the effect on global coal and gas prices is limited for now. The main signal is India's push to cut import dependence and make wider use of domestic coal.

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