Images generated by US National Aeronautical Space Agency (Nasa) satellites have been able to conclusively measure changes in the intensity of artificial light at night (Alan)—which bears a direct correlation with human activity and is one of the fundamental indicators of modern societal development.
Globally, one of the biggest changes could be seen in India—a direct result of increased urbanization in the southern and western regions of India and increased access to electricity in northern India.
This is not surprising; over the last decade, India has provided electricity access to 30 million households that were previously deprived of access; close to 15 million of these households belong to the northern states of Uttar Pradesh, Bihar and Jharkhand. Today, 99% of Indian households have access to electricity, compared to less than 70% a decade ago.
This electrification push was achieved on the shoulder of India’s coal- powered thermal plants—the mainstay of our electricity generation, even though renewable energy sources such as hydroelectric, solar and wind power have evolved from alternative sources into economic necessities and hold over 50% of India’s power generation capacity.
India has a colossal 400 billion tonnes of coal resources, which gives us roughly 100 years of coal available at our current production capacity. As the world’s second-largest producer and consumer of coal with more than 70% of our power dependent on this vital resource, India has a unique strategic position.
This also makes it imperative for us to turn this traditionally high emission resource into an enabler of India’s 2070 net-zero commitment.
It is in this direction that a national push for coal gasification serves as our dual vehicle to secure our strategic autonomy and at the same time use this vital resource without reneging on our global leadership in climate commitments.
The National Coal Gasification Mission intends to convert 100 million tonnes of coal into synthetic gas (syngas) by 2030. A pilot incentive programme of $1 billion was rolled out in 2024.
Building on this momentum, the Narendra Modi government has now approved another $4 billion. This will facilitate nearly $30 billion of investment, enable utilization of around 75 million tonnes of coal annually and generate nearly 80 billion cubic metres of syngas every year.
By prioritizing coal gasification, India is moving away from the linear ‘extract-and-burn’ approach to a highly sustainable, zero-waste coal circular economy. This transition is vital because India currently imports a massive share of the industrial inputs that can be derived from gasification.
Commercial scale gasification will also lay down greenfield infrastructure for local chemical manufacturing, further encouraging local industries and self-reliance.
We can scale high-value commodities such as methanol, ammonia, green hydrogen, olfins and petrochemicals that feed vital industries and reduce (to eventually eliminate) India’s dependence on imports—estimated at a whopping $30 billion.
Capturing and utilizing every single chemical byproduct from gasification allows us to build an ironclad shield of energy sovereignty.
The national gasification push also presents India with an opportunity for technological upgradation, innovation and global collaboration. We are focusing on developing gasification models for India’s high-ash-content coal. Indian engineers and corporate partners are developing custom gasification systems to handle high-ash coal.
As we strive to master this chemical extraction process on a commercial scale, we will also be able to export this high-ash cleantech to other developing countries throughout the Global South facing similar challenges.
This coal gasification initiative needs to be viewed in the larger global context of energy security and energy independence.
In January 2025, as critical mineral supply chains were being recognized as the lifelines of modern economies, the government committed about $4 billion dollars to secure the supply of 24 critical minerals.
The National Critical Minerals Mission aims to increase the local exploration and mining of these critical minerals, set up mineral processing parks, ramp up recycling efforts and focus on research and sustained scientific excellence in this field.
At the heart of these rapid structural transformations is a ‘whole-of-government’ approach for creating a lucrative, low-risk greenfield investment ecosystem. Over the past decade, the government has systematically dismantled bureaucratic and financial barriers to make clean-coal conversion highly competitive for private and public capital alike.
However, this is not just a single-field effort, but a structural shift across all sectors. India has moved towards transparent governance, structural reforms, technology-driven policymaking and long-term strategic planning across sectors that were once seen as opaque and inefficient.
By using carbon-tapping innovation to transform our vast geological wealth into energy, India is setting a global example of how to achieve energy sovereignty while simultaneously moving forward as a sustainably low-carbon fast-growing economy.
The author is chairperson, Economic Advisory Council to the Prime Minister of India.