Cabinet approves Rs 37,500 crore incentive scheme to promote coal gasification, raises paddy MSP by Rs 72
Sharing the details, Union Information & Broadcasting Minister Ashwini Vaishnaw said that the country has 401 million tonnes of known coal reserves, which is enough for the next 200 years.
In a push to cleaner energy, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a Rs 37,500 crore coal gasification scheme. The move will also strengthen India’s energy security and reduce dependence on forex-guzzling imports amid the volatile geopolitical situation due to the ongoing conflict between the United States and Iran. Sharing the details, Union Information & Broadcasting Minister Ashwini Vaishnaw said that the country has 401 million tonnes of known coal reserves, which is enough for the next 200 years.
"An outlay of Rs 37,500 crore has been kept for this scheme, and there will be an investment of around Rs 3,000 lakh crore in this, and the projects will be put up for gasifying 75 million tonnes of coal," he said.
What is coal gasification?
Coal gasification refers to the process of converting dry fuel into synthetic gas (syngas), which is used as an alternative fuel and helps reduce carbon emissions. This process supports production of methanol, fertilizers, hydrogen and chemicals, cutting reliance on imported oil (83 per cent), methanol (over 90 per cent) and ammonia (13-15 per cent).
The scheme is aimed at accelerating surface coal and lignite gasification projects across the country, promoting self-reliance by reducing import dependence on critical commodities such as LNG, urea, ammonium nitrate, ammonia, and coking coal, while enabling enhanced utilisation of domestic resources. The country aims for 100 million tonnes of coal gasification capacity by 2030.
Govt raises paddy MSP by Rs 72 to Rs 2,441/quintal
The government has raised the minimum support price (MSP) for paddy by Rs 72 to Rs 2,441 per quintal for the 2026-27 kharif marketing season. The support price for common and A-grade varieties has been increased by Rs 72 per quintal to Rs 2,441 and Rs 2,461 per quintal, respectively, for the 2026-27 kharif marketing season (September-October).
Information and Broadcasting Minister Ashwini Vaishnaw said the MSP is 50 per cent more than the cost of production.
"Estimated payout to farmers would be Rs 2.60 lakh crore and annual procurement estimated at 824.41 lakh tonne," he added.