India to Allow 100% FDI in Coal Sector, Woos Global Investors for Gasification Push: Kishan Reddy
Hyderabad, June 11 (TNT): Union Coal Minister G. Kishan Reddy on Thursday announced that India would allow 100 per cent Foreign Direct Investment (FDI) in the coal and mining sectors, as the Centre seeks to attract global investors and accelerate the country’s ambitious coal gasification programme.
Addressing the Coal Gasification Roadshow here, Reddy invited domestic and international companies to invest in the sector and encouraged Indian firms to form joint ventures with global partners to bring advanced technologies and capital into the country.
“With the cooperation of industry, we will bring FDI, attract large multinational companies and encourage investments across the sector. Domestic companies should explore joint ventures with global partners to bring the best technology and financial investments to India,” he said.
The minister said companies possessing coal mines would enjoy a natural advantage in developing coal gasification projects and assured investors of long-term coal availability and policy support.
Reddy said coal gasification would play a pivotal role in strengthening India’s energy security, reducing dependence on imports and supporting the country’s emergence as a global manufacturing hub.
“Coal gasification is not just a coal sector initiative. It is part of the larger journey of Atmanirbhar Bharat and India’s rise as a global manufacturing and industrial powerhouse,” he said.
Noting that coal contributes nearly 70-73 per cent of India’s electricity generation, Reddy said the country’s vast coal reserves provide a strong foundation for expanding coal gasification projects.
He said the Centre had approved financial support worth Rs 46,000 crore for coal gasification initiatives to accelerate investments and promote domestic production of fuels, chemicals and other value-added products.
According to the minister, coal gasification can significantly reduce India’s dependence on imported fuels and chemicals, leading to substantial foreign exchange savings while boosting the steel, chemical, energy and manufacturing sectors.
Highlighting international experience, Reddy said countries such as China, the United States and South Africa had successfully adopted coal gasification technologies and expressed confidence that India could emerge as one of the world’s leading markets in the sector.
Union Minister of State for Coal and Mines Satish Chandra Dubey said coal gasification would help make India self-reliant by reducing dependence on imported chemicals and fuels while creating fresh opportunities in manufacturing and energy.
“Through coal gasification, we will be able to manufacture many of these products domestically. This is a significant step towards self-reliance,” Dubey said.
He added that the government would provide incentives for eligible projects and continue supporting investments in advanced technologies.
Earlier, Bharat Heavy Electricals Limited (BHEL) and the Central Institute of Mining and Fuel Research (CIMFR) showcased indigenous coal gasification technologies. Maharashtra, Chhattisgarh and Telangana also presented investment opportunities and policy incentives aimed at accelerating the growth of the coal gasification ecosystem.
Coal Secretary Vikram Dev Dutt, Additional Secretary Sanoj Kumar Jha, Singareni Collieries Company Limited (SCCL) Chairman and Managing Director Dr Jyothi Buddha Prakash, and other senior officials attended the programme.
Relevant entities: G. Kishan Reddy, Satish Chandra Dubey, Bharat Heavy Electricals Limited, Central Institute of Mining and Fuel Research, and Singareni Collieries Company Limited.
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