The Indian government has approved a new coal-based gas production scheme aimed at enhancing the country’s energy self-sufficiency amid ongoing global challenges and supply constraints in the gas sector. The decision was taken by the central cabinet during a meeting chaired by Prime Minister Narendra Modi on Wednesday.

The ambitious initiative seeks to leverage India’s substantial coal reserves to produce gas, with a target of generating 100 million tons of gas from coal by 2030. According to Union Minister Ashwini Vaishnaw, the plan is expected to make India self-reliant in gas supply within the next four to five years.

The scheme addresses the nation’s energy security by reducing dependence on imports of liquefied natural gas (LNG), urea, ammonia, and methanol — key products that currently rely heavily on foreign sources. Encouraging domestic production of coal-based gas is seen as a strategic move to underpin broader industrial and energy needs.

Under the program, industries involved in coal-to-gas production will receive incentives of up to 20%, aimed at boosting participation and investment. Additionally, the government has extended the coal supply agreement period to 30 years to provide long-term stability and assurance to investors.

The initiative is projected to attract investments amounting to approximately ₹3 lakh crore (300 billion rupees) and generate around 50,000 direct and indirect jobs. Officials view the move as a significant step toward achieving energy independence while stimulating economic growth and employment.

By capitalizing on domestic coal resources, the government intends to strengthen India’s energy infrastructure, reduce vulnerability to international market fluctuations, and foster sustainable industrial development.