New Delhi:An energy source buried underground (literally) has returned to the policy spotlight. 

On Wednesday, the Union Cabinet of India cleared a Rs 37,500 crore support scheme for coal and lignite gasification. Union Information & Broadcasting Minister Ashwini Vaishnaw said the plan could crowd in Rs 3 lakh crore of investments.

The timing is not accidental. Oil supply chains are under stress due to the Iran conflict. The Reserve Bank of India has warned that fuel prices may rise if the war drags on.

As New Delhi looks to secure supply chains, it is also chalking out a long-term strategy to reduce energy dependence.

In its search for energy sources, the government has decided to turn domestic coal (found in abundance) into gas, chemicals, and fuels that India currently imports at a high cost.Contrary to what the name of the process suggests, coal gasification does not burn coal.

It heats crushed coal with limited oxygen and steam at very high temperature and pressure.This produces syngas - mainly carbon monoxide (CO) and hydrogen (H₂).

Source:Ndtv