CHENNAI: Union Minister for Coal and Mines G Kishan Reddy on Sunday claimed that the Centre is prioritising energy security by way of a strategic shift towards coal gasification with substantial incentives aiming to reduce imports.

Stating that the Centre is giving incentives to the tune of Rs 46,000 crores for coal gasification, he told reporters that more than 35 companies will be starting coal gasification activities in India within two months. "We are encouraging the companies bringing technology to India to solve the technology gap for this purpose", he added.

Pointing out that India has the fifth-largest coal reserve in the world, the minister said that electricity is generated from coal in about 73 per cent of thermal power projects in the country.

He also recalled that in a major step towards strengthening India's energy security, promoting import substitution, and accelerating industrial self-reliance, the prime minister has laid the foundation stone for the Rs 25,016 crore Lakhanpur coal gasification project at Jharsuguda in Odisha.

The minister said that the project represents a significant step towards maximising value from India's vast coal reserves, strengthening industrial competitiveness, and advancing the vision of an Aatmanirbhar and Viksit Bharat.

The minister said that the National Critical Mineral Mission, backed by significant investments, is securing vital resources globally and domestically, with projects like Neyveli Lignite Corporation's rare earth exploration in Tamil Nadu underscoring a commitment to inclusive growth across the nation.

"NLC has signed a Memorandum of Understanding (MoU) with Bhabha Atomic Research Centre (BARC) in this regard", he added.