Business 11 Jun, 2026

Coal gasification-based urea production to be economically viable once scaled: Centre

Business To Business, New Delhi, 11^th June, 2026:    Coal gasification-based urea production could become economically viable as projects expand, providing India with a domestically produced alternative to imported urea and ammonia, according to Rupinder Brar.
Speaking on the sidelines of an event organized by Ashoka Centre for a People Centric Energy Transition and Chintan Research Foundation, Brar emphasized the strategic importance of indigenous fertilizer production.
Reducing Import Dependence
Brar noted that India remains a heavily agrarian economy where urea is a critical component of the fertilizer sector.
According to her:

• India currently imports significant quantities of urea and ammonia.
• Coal gasification projects can help produce these inputs domestically.
• Indigenous production would improve supply security and reduce dependence on overseas markets.

She stated that availability and self-reliance are key advantages of the technology.
What Is Coal Gasification?
Coal gasification is a process that converts coal into synthesis gas (syngas), which can then be used to manufacture products such as:

• Urea
• Ammonia
• Methanol
• Synthetic fuels
• Industrial chemicals

The technology is being promoted as a way to utilize India's abundant coal reserves for value-added industrial production.
Viability Through Scale and Support
Brar said the government's expectation is that coal gasification-based urea production will become commercially viable as projects grow in size and efficiency.
Factors supporting viability include:

• Economies of scale.
• Government incentives and subsidies.
• Reduced import-related costs and risks.
• Greater integration with domestic industrial supply chains.

For India, the development of domestic urea and ammonia production is strategically significant because:

• Fertilizers are essential for agricultural productivity.
• Global supply disruptions can affect availability and prices.
• Import dependence exposes the country to geopolitical and currency risks.

Coal gasification has therefore emerged as part of a broader effort to enhance energy and resource security while creating new industrial opportunities.
While supporters see coal gasification as a means to strengthen self-reliance, the technology faces challenges related to capital costs, environmental considerations, and operational efficiency. The success of ongoing projects will likely determine whether large-scale domestic production can compete sustainably with imported alternatives in the coming years.