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Chemical industry

Thursday
13 Nov 2025

India’s Power Giant NTPC Plans to Enter Coal Gasification Business

13 Nov 2025  by Reuters   
India’s state-run power producer NTPC (NTPC.NS) plans to enter the coal gasification sector with a goal of producing 5–10 million tonnes of synthetic gas annually within the next three to four years, according to a source familiar with the plan on Wednesday. The initiative marks a key step in NTPC’s strategy to diversify its energy portfolio and support India’s broader energy transition objectives.


A drone view of solar panels and the NTPC (National Thermal Power Corporation) power plant in Solapur, India, March 2, 2025.

The company is preparing to issue a tender for technical consultation within the current fiscal year ending March 31, and is evaluating potential locations for the project, the source said. NTPC, which already operates its own coal mines, intends to utilize domestic coal resources for synthetic gas production, aiming to enhance value addition and reduce reliance on imported fuels.

In 2024, the Indian government approved incentive programs worth 85 billion rupees ($967.06 million) to encourage projects that convert coal into gas. The synthetic gas generated from such projects can serve as feedstock for fertilizer and petrochemical industries, contributing to domestic production growth. India’s national target is to gasify 100 million tonnes of coal by 2030, reflecting the government’s emphasis on cleaner and more efficient coal utilization technologies.

Globally, countries such as the United States are also advancing coal gasification research and development as part of efforts to reduce emissions and diversify industrial energy sources. NTPC’s initiative aligns with this trend, integrating innovation into its existing coal-based operations.

In addition to coal gasification, NTPC is pursuing expansion in nuclear power. The company has begun identifying land for nuclear projects across 16 Indian states as part of its plan to develop a 30-gigawatt nuclear energy portfolio. India currently operates just over 8 gigawatts of nuclear power capacity, but aims to expand this to at least 100 gigawatts by 2047 to strengthen its clean energy mix and ensure stable power supply for industrial and residential use.

According to the source, NTPC’s planned nuclear projects will range in size from 700 megawatts to 1,600 megawatts and will incorporate multiple technologies to improve efficiency and safety standards. The estimated cost of constructing a 1-gigawatt nuclear project is between 150 billion and 200 billion rupees.

NTPC has not yet provided an official comment on the coal gasification or nuclear expansion plans. However, the company’s efforts reflect its broader objective to integrate diverse energy technologies—ranging from thermal to nuclear—to meet India’s growing power demand while advancing toward cleaner and more sustainable energy production.

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