Budget 2026: Coal Gasification Gets Massive Boost, Syngas Cost to Drop

• Union Budget 2026 is set to significantly increase the incentive package for coal gasification, potentially reaching ₹20,000-₹35,000 crore, up from the previous ₹8,500 crore scheme.
• The move follows a PMO review meeting that discussed reducing syngas costs and reactivating dormant gas-based power plants.
• Coal gasification converts coal into syngas (hydrogen, carbon monoxide, carbon dioxide) for electricity, fuel, methanol, ammonia, and other chemicals, offering a safer alternative to burning coal.
• This initiative aims to enhance energy security, reduce imports of natural gas, crude oil, and fertilizers, and create jobs in coal-rich regions.
• NTPC plans a ₹10,000 crore Coal-to-Synthetic Natural Gas (SNG) project in Talaipalli, Chhattisgarh, to produce 5 lakh tons of SNG annually using 25 lakh tons of domestic coal.

Why It Matters: Budget 2026 will significantly boost coal gasification, aiming for energy security, reduced imports, and job creation.