New Delhi: Coal gasification has so far saved Rs 28,000 crore in foreign exchange by reducing reliance on imported oil, methanol and ammonia, govt said recently as it prepares to launch the second phase of the programme.At a recent meeting with investors, coal ministry said the first phase of scheme, launched in 2023-24, had mobilised Rs 85,000 crore in investments and enabled utilisation of 23 million tonnes of coal annually. While the draft request for proposal for second phase is likely to be released soon, officials said the final bidding document is expected in July.Earlier this month, Union Cabinet approved the second phase of incentive scheme for gasification of 75 million tonnes (MT) of coal and lignite, with a financial outlay of Rs 37,500 crore. Govt expects scheme to attract investments of Rs 2.5-3 lakh crore across 25 projects in coal-rich regions over next five years and create 50,000 direct and indirect jobs. The programme is expected to accelerate coal gasification and help achieve the national target of converting 100 MT of coal into syngas by 2030.Officials said Odisha and Maharashtra have already announced separate incentive schemes to promote coal gasification projects, while several other states are expected to follow suit.According to coal ministry officials, gasification will help produce methanol, fertilisers, hydrogen and chemicals, strengthening energy security and reducing dependence on imports of key products such as LNG, urea, ammonia and methanol.India’s import bill for key substitutable products such as liquefied natural gas, urea, ammonium nitrate, ammonia, coking coal, methanol and dimethyl ether (DME) stood at nearly Rs 2.8 lakh crore in FY25.India holds one of the world’s largest coal reserves of 401 billion tonnes and lignite reserves of 47 billion tonnes. Gasification converts coal into synthesis gas (syngas), which can substitute high-value imports and help shield economy from global supply disruptions and price volatility. Coal remains the backbone of India’s energy sector, accounting for more than 55% of country’s energy mix.Govt launched National Coal Gasification Mission in 2021, followed by an Rs 8,500 crore incentive framework in 2024 to support public and private sector projects, under which eight projects are currently under implementation.