The Union cabinet on Thursday approved a new scheme to promote conversion of coal and lignite into synthesis gas (syngas) through the gasification process in a move to strengthen energy security. With an outlay of Rs 37,500 crore, the Scheme for Promotion of New Surface Coal/Lignite Gasification Projects seeks to incentivise 25 projects for production of syngas and downstream products, targeting gasification of approximately 75 million tonne (mt) of coal/lignite. The new scheme is an addition to the existing viability gap funding scheme worth Rs 8,500 crore approved in 2024 for incentivising coal and lignite gasification projects. According to the government, the new scheme aims at enhancing energy security and reducing dependence on imports of key products such as LNG, urea, ammonia, and methanol. This comes in the backdrop of growing concerns over disruptions in global energy supplies due to the ongoing crisis in West Asia.…