India's Union Cabinet approved a ₹375 billion incentive scheme in May 2026 to boost domestic coal gasification for producing chemicals like methanol and ammonia. The goal is to cut import dependence, but the plan could more than double CO2 emissions in this segment unless carbon capture technology is deployed at scale. The success of this initiative hinges on how well companies integrate carbon capture, utilisation, and storage (CCUS) alongside production. With CCUS infrastructure still nascent in India, project costs and regulatory compliance will determine whether the plan delivers on both energy independence and emission goals.
