have the potential to save India approximately ₹1.5 lakh crore in foreign exchange over the next five to seven years by substituting imports, Secretary Vikram Dev Dutt stated on Thursday.




Speaking at the 4th Conference of Mining Ministers on Reforms in the Mines and Coal Sector in South Goa, Dutt highlighted that the Centre has committed ₹46,000 crore in financial incentives across two schemes to promote coal gasification.




He emphasized that "Mining with a conscience" must serve as the guiding philosophy for responsible miners.




By converting coal into synthetic gas (syngas), coal gasification enables the domestic production of several goods that India currently imports in large volumes.




"If the coal gasification projects get underway and gain scale, we would be succeeding in about five to seven years in saving about Rs one and a half lakh crore potentially of foreign exchange through this import substitution," Dutt said.




"Coal gasification has the potential of becoming an instrument of industrial diversification and regional development," he added, encouraging coal-rich states to roll out supportive policies to draw investment into the sector.




Products like methanol, ethanol, ammonium nitrate (used in explosives), and raw materials for direct reduced iron (DRI)-based steel making can all be manufactured via gasification, he explained.




Dutt noted that Odisha and Maharashtra have already established incentive policies, with active project clusters emerging in Odisha’s Angul district and Maharashtra’s Chandrapur belt. He urged other coal-bearing states—such as Jharkhand and Chhattisgarh—to adopt similar investor-friendly frameworks so that resource-rich regions can fully leverage central scheme benefits.




Because coal gasification ventures demand heavy upfront capital alongside state-level support in water, electricity supply, and taxation, proactive measures by states are vital, he remarked.




Underlining its potential for job generation, Dutt noted that gasification plants will create employment in downstream sectors, support skilled and semi-skilled labor, reinforce local supply networks, and drive regional economic growth.




Reflecting on broader coal sector reforms, Dutt noted that the 2020 commercial mining policy lifted end-use and sale restrictions, facilitating increased private sector involvement. Through 15 auction rounds, 137 mines have been allocated, with commercial and captive blocks now supplying roughly 20 percent of India's total coal output. Furthermore, the total number of accredited exploration agencies has expanded from 13 state entities to 57, which includes 44 private agencies.




Dutt appealed to state authorities to speed up land acquisition, statutory clearances, public hearings, and necessary permits to bring auctioned coal blocks online faster. Swift operationalization helps state governments collect royalties and other revenues earlier, providing funds for public development initiatives.




On the environmental front, the Coal Ministry has targeted 147 mines for scientific closure over a three-year period, with 43 already completed. Scientific closure goes beyond technical sealing to encompass ecological restoration and land repurposing tailored to community needs. To assist in assessing and repurposing these closed mine sites, the ministry has launched a digital platform named 'SuVikalp'.




Dutt concluded by stating that the future of coal mining must look beyond raw production figures to emphasize technological progress, productivity, transparency, and eco-friendly practices.




"Mining with a conscience" should remain the primary benchmark for responsible miners, he reiterated, advocating for tighter collaboration among central and state authorities, mining enterprises, and other key players to ensure a competitive, efficient, and sustainable industry.




The conference was attended by Union Minister for Coal and Mines G Kishan Reddy, MoS for Mines Satish Chandra Dubey, and Goa Chief Minister Pramod Sawant.



(With inputs from agencies)