New Delhi: State-owned power giant NTPC Limited will soon foray into coal gasification as the final product can be used as fuel and as feedstock for fertilizer and synthetic fuel, enhancing scope of its marketing.
A source privy to the development told PTI that NTPC has planned coal gasification for using the final product itself as well as selling it to other users to maximise profits as well as enhance clean fuel availability in the country.
The source further disclosed that the coal gasification project will begin this fiscal year only and the company will take around four years to build a complete ecosystem for that.
NTPC is expected to float tenders within FY26 for engaging technical consultants for its planned coal gasification projects, the source said adding the company is looking to produce 5-10 million tonnes of gas from coal produced out of its captive mines.
The cost of production of gas from coal would be around USD 10-12 MMBtu.
MMBtu or Million British Thermal Unit is a unit to measure energy, commonly used to quantify the heat content of natural gas and other fuels.
NTPC Mining Limited (NML), a wholly-owned subsidiary of NTPC, is targeting a coal production of 100 MT per annum by year 2030.
NTPC, under Ministry of Power, is India's largest power generating company from sources like thermal, solar among others.
The company is also setting up a nuclear power project in Rajasthan in a joint venture with Nuclear Power Corporation of India Ltd (NPCIL), at a total cost of Rs 42,000 crore.
Prime Minister Narendra Modi laid the foundation stone for the Mahi Banswara Rajasthan Atomic Power Project in Banswara, Rajasthan on September 25, 2025.
As per National Coal Gasification Mission, coal gasification is considered as cleaner option compared to burning of coal. Gasification facilitates utilization of the chemical properties of coal.
The mission aims to achieve 100 MT coal gasification by year 2030.
The syn gas produced from coal gasification is usable in producing synthetic natural gas (SNG), energy fuel (methanol & ethanol), ammonia for fertilizers and petro-chemicals.
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