State-owned NTPC Ltd is preparing to enter the coal gasification space with plans to produce a minimum 5–10 million tonnes (MT) of synthetic gas annually within the next three to four years, according to a senior company official.

The cost of producing the gas is estimated at $10–$12 per million British thermal units (mmBtu). NTPC expects its pricing to remain competitive with the delivered cost of liquefied natural gas (LNG) and does not anticipate any difficulty in securing buyers. The output will either be supplied to domestic customers or used in the company’s own power plants. NTPC intends to use its own coal for gasification.

The company is also considering hiring a technology consultant for the programme and is expected to invite tenders within the current financial year.

The initiative aligns with the government’s push for coal gasification, which includes financial incentives worth Rs 85 billion to support gasifying 100 MT of coal by 2030. The programme also supports India’s goal of raising the share of natural gas in the energy mix to 15 per cent by 2030, up from the present 6 per cent.

NTPC is simultaneously expanding into the nuclear power sector. The company is planning nuclear projects across states including Madhya Pradesh, Rajasthan, Gujarat and Haryana, with capacities ranging from 700 MW to 1,600 MW. These projects are expected to use pressurised heavy water reactor (PHWR) technology.

In September, Prime Minister Narendra Modi laid the foundation stone for a 2,800 MW nuclear power project in Banswara, Rajasthan, to be developed jointly by NTPC and the Nuclear Power Corporation of India Ltd (NPCIL). The facility will comprise four PHWR units of 700 MW each.

India aims to scale its nuclear power generation capacity to 100 GW by 2047, up from the current 8 GW.