Contents
The Case for Building India’s Coal Chemistry Capability
R.A. Mashelkar — Distinguished Scientist, former Director General, CSIR- India survived the 2026 Strait of Hormuz closure through refinery flexibility and diplomatic diversification, but this managed the symptom — it did not reduce India’s underlying import dependence.
- The author argues coal chemistry — specifically converting coal into Dimethyl Ether (DME) as an LPG substitute — is India’s next frontier for genuine structural self-reliance, not just crisis management.
- Core thesis: indigenous scientific and technological capability, built over decades, is a more durable form of energy security than diplomacy or military arrangements alone.
- The ₹37,500 crore coal gasification scheme approved by the Union Cabinet has already moved this from “policy intent” to “execution challenge.”
- The Strait of Hormuz is a narrow chokepoint between Iran and Oman connecting the Persian Gulf to the Arabian Sea; roughly a fifth of global oil and a fifth of global LNG trade transits it, with no comparable alternative route for most Gulf exporters.
- In 2026, escalating US–Israel–Iran conflict led Iran to declare the Strait closed from early March 2026, triggering a sustained supply shock; India, being heavily Gulf-dependent, was among the worst-exposed economies.
- LPG (Liquefied Petroleum Gas) is the cooking fuel used by most Indian households (under schemes like PM Ujjwala Yojana); India imports a large share of its LPG, overwhelmingly from Gulf/Atlantic Basin sources — making it more geographically concentrated than crude oil.
- Coal gasification is a thermochemical process: coal reacts with oxygen/steam under heat and pressure to produce syngas (a mix of CO, H₂, CO₂, methane) — a feedstock convertible into fuels, fertiliser inputs, or chemicals.
- Dimethyl Ether (DME) is a clean-burning synthetic gas, chemically similar enough to LPG that it can be blended directly into existing LPG cylinders and distribution infrastructure with no new network needed.
- CSIR-National Chemical Laboratory (NCL), Pune had, prior to the crisis, developed and patented an indigenous catalyst-based technology for converting methanol into DME.
- The Bureau of Indian Standards (BIS) notified IS 18698:2024, permitting blending of up to 20% DME with LPG for domestic, commercial and industrial use; blending up to 8% requires no modification to existing cylinders, regulators or burners.
- The Union Cabinet approved a ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects (May 2026), building on the National Coal Gasification Mission (2021), targeting 100 million tonnes (MT) of coal gasification annually by 2030.
- Refinery flexibility as the model: two decades of investment in metallurgy, catalysis and process engineering allowed non-Hormuz crude intake to rise sharply within weeks of the closure (author-cited: 55% to 70%).
- The LPG production surge: under the LPG Control Order, refineries were directed to maximise yields; the author cites domestic production rising from 35 TMT/day to 54 TMT/day within five days (author-sourced figures).
- Why LPG is structurally different from crude: a refinery can be re-engineered to accept dozens of crude grades; LPG as an imported molecule cannot be sourced from as many geographies — the fix is producing a domestic substitute molecule, not refining the imported one more efficiently.
- The economic case for DME: a 20% coal-derived DME blend could displace an estimated 6.3 million tonnes of LPG imports annually, saving roughly ₹34,000 crore in forex per year (author-cited industry estimate).
- Innovation-to-execution pipeline: CSIR-NCL generated the research, the Centre for High Technology (Ministry of Petroleum & Natural Gas) fast-tracked scale-up approval during the crisis, and the Cabinet has now committed capital.
- The residual challenge: India’s coal has higher ash content than the coal that underpinned China’s mature coal-to-chemicals industry; domestic gasification capacity remains well below the 100 MT ambition — now an execution and industrial-discipline problem, not a policy gap.
- In favour — Genuine structural fix: domestic DME addresses LPG’s geographic concentration risk at the source, rather than merely coping with disruption after it occurs.
- In favour — Existing infrastructure compatibility: BIS-approved blending means no new distribution network is needed — a low-friction pathway to scale.
- In favour — Resource abundance: India holds among the world’s largest coal reserves, giving genuine long-run feedstock security for gasification-based chemistry.
- In favour — Institutional proof of concept: the CSIR-NCL-to-Cabinet-scheme pipeline demonstrates that India’s innovation ecosystem can convert lab research into strategic assets rapidly when incentives align.
- In favour — Import substitution multiplier: coal gasification also targets substitution of urea, ammonia, methanol and LNG imports — a broader chemicals self-reliance dividend beyond a single fuel.
- Against — Technical gap remains wide: India’s higher-ash coal is harder to gasify efficiently than the coal that enabled China’s coal-to-chemicals dominance; closing this gap requires sustained R&D, not just capital.
- Against — Execution risk: announcing a scheme is not the same as building gasification capacity at scale within the 2030 timeline — India’s track record on large infrastructure timelines is mixed.
- Against — Environmental trade-off: coal gasification, while cleaner than direct combustion, still relies on a fossil fuel input, sitting in tension with India’s net-zero-by-2070 commitment.
- Against — Narrow substitution ceiling: even at full 20% blending, DME addresses only a fraction of total LPG demand — it reduces but does not eliminate import dependence.
- Prioritise closing the ash-content gap through sustained investment in catalysis and gasifier design suited to Indian coal grades.
- Scale DME blending progressively — starting with the 8% no-modification threshold before pushing toward the full 20% BIS-approved limit, to de-risk rollout.
- Ensure the ₹37,500 crore scheme’s milestone-linked incentives translate into actual commissioned capacity, with transparent monitoring against the 100 MT-by-2030 target.
- Broaden coal chemistry’s ambit beyond DME to ammonia, methanol and synthetic natural gas, maximising the import-substitution dividend embedded in the scheme’s design.
- Institutionalise the research-lab-to-scheme pipeline demonstrated by CSIR-NCL, so indigenous capability-building continues independent of crisis-driven urgency.
- BIS IS 18698:2024: permits up to 20% DME blending with LPG; blending up to 8% needs no infrastructure modification.
- Coal Gasification Scheme (2026): ₹37,500 crore outlay, up to 20% plant & machinery cost incentive, 30-year coal linkage tenure, targeting national goal of 100 MT by 2030.
- Intro: Distinguish crisis management (refinery flexibility) from structural risk reduction (domestic substitution); introduce coal gasification/DME as the proposed structural fix.
- Body 1 — The case for coal chemistry: LPG’s geographic import concentration vs. crude’s diversifiability; India’s coal abundance; BIS-approved blending; the ₹37,500 crore scheme’s targets.
- Body 2 — Constraints: Ash-content technical gap, execution risk against the 2030 timeline, tension with net-zero-2070 goals, narrow substitution ceiling.
- Conclusion: Indigenous capability, once built, becomes a permanent strategic asset — coal chemistry is India’s next capability-building frontier after refining, but requires sustained industrial discipline, not just policy announcement.
Consider the following statements regarding Dimethyl Ether (DME):
1. It can be produced from coal through gasification followed by conversion to methanol and then DME.
2. The Bureau of Indian Standards permits blending of up to 20% DME with LPG.
3. DME requires an entirely new distribution and cylinder network separate from existing LPG infrastructure.
Which of the statements given above are correct?
Statement 1 — Correct. Coal gasification produces syngas, converted to methanol, then to DME.
Statement 2 — Correct. BIS standard IS 18698:2024 permits up to 20% blending.
Statement 3 — Incorrect. DME is designed to use existing LPG cylinders and distribution infrastructure, especially at lower blend ratios (up to 8% needs no modification at all).
A Unified Policy Architecture for India’s Energy Future
Anjan Ray — Investment Partner, Navam Capital, former Director, CSIR-IIP; Famida Khan — Project Scientist-II, INSA · Letters to the Editor- India has made strong progress on energy access (near-universal electrification, clean cooking fuel expansion) and is among the fastest-growing renewable energy markets globally.
- As India targets energy self-reliance by 2047 and net-zero by 2070, the authors argue the next phase needs integrated, coordinated governance rather than siloed sector-wise planning.
- An INSA (Indian National Science Academy) policy brief (May 2026) proposes a four-pillar unified national energy framework: adequacy, access, affordability, and appropriate sustainability.
- Central argument: energy security cannot be achieved by treating coal, renewables, gas, biomass and emerging technologies as separate silos — they need to be planned as one interconnected system.
- Energy self-reliance by 2047 and net-zero by 2070 are India’s two headline long-term energy/climate commitments.
- India’s past-decade achievements include: Saubhagya Scheme (household electrification, 2017), Pradhan Mantri Ujjwala Yojana (clean cooking gas access, 2016), and rapid renewable capacity expansion (author-cited: ~40 GW in 2015 to ~260 GW by 2025).
- Despite this, India remains import-dependent for a significant share of oil and natural gas, and demand is projected to keep rising with continued industrialisation and urbanisation.
- INSA is India’s apex science academy; its Centre for Science, Technology, Innovation and Policy (CSTIP) produces policy briefs feeding into national planning — this brief is one such output, released May 2026.
- India’s energy governance has historically been sector-fragmented — coal under the Ministry of Coal, power under the Ministry of Power, renewables under MNRE, oil & gas under the Ministry of Petroleum & Natural Gas — each with separate planning cycles.
- Circular economy and Carbon Capture, Utilisation and Storage (CCUS) are flagged in the brief as “cross-cutting enablers” — supporting multiple pillars simultaneously rather than sitting within a single sector.
- Pillar 1 — Adequacy: reliable, diversified energy supply through a balanced conventional–emerging portfolio, backed by modern infrastructure, storage and digital technologies.
- Pillar 2 — Access: building on electrification and clean-cooking gains to strengthen last-mile delivery, service quality, and decentralised energy solutions.
- Pillar 3 — Affordability: innovative financing, efficient markets, and consumer-focused safeguards to keep the transition economically viable for households and industry.
- Pillar 4 — Appropriate sustainability: rejecting a one-size-fits-all green transition in favour of pathways matched to India’s developmental stage, resource endowments and regional context.
- Phased implementation logic: near-term focus on infrastructure and renewables scale-up plus emerging tech (green hydrogen); medium/long-term shift toward deeper low-carbon integration and bio-resource use.
- Systems-thinking framing: coal, renewables, biomass, gas and waste-to-energy are treated as complementary components of one system — coordination and long-term planning enhance the effectiveness of each.
- In favour — Addresses a real coordination gap: India’s energy ministries have historically operated with separate planning cycles; a unified framework could reduce duplication and conflicting signals.
- In favour — Balances pragmatism with ambition: “Appropriate sustainability” avoids importing transition models unsuited to India’s coal-dependent, still-industrialising economy.
- In favour — Explicit affordability pillar: elevating affordability to a core pillar acknowledges that transition failures are often distributional/cost failures, not merely technical ones.
- In favour — Built on demonstrated track record: the framework explicitly builds on Saubhagya, Ujjwala and renewable capacity gains as foundations, lending it credibility.
- In favour — Cross-cutting enablers identified: flagging CCUS and circular economy as enablers rather than standalone goals reflects mature systems thinking.
- Against — Advisory, not binding: as a policy brief from an academy (not a legislative or executive body), the framework has no statutory force.
- Against — Coordination is easier to recommend than implement: India’s federal structure and inter-ministerial turf considerations have historically resisted unified frameworks in other sectors.
- Against — Vague on institutional mechanism: the brief calls for “institutional mechanisms” for coordination but does not specify a concrete authority, timeline, or accountability structure.
- Against — Potential pillar trade-offs unaddressed: adequacy (which may include continued coal reliance) and appropriate sustainability could pull in different directions; arbitration principles are unclear.
- Translate the four-pillar framework into a concrete institutional mechanism — e.g., a standing inter-ministerial energy coordination body — with clear mandate and accountability.
- Develop pillar-conflict resolution principles upfront rather than treating all four pillars as automatically mutually reinforcing.
- Anchor appropriate sustainability in region-specific transition plans for coal-dependent states, including workforce reskilling.
- Use CCUS and circular economy as pilot cross-cutting programmes that demonstrate the unified-framework logic in practice.
- Link this framework explicitly to crisis-resilience planning (as demonstrated during the 2026 Hormuz shock) — adequacy planning should incorporate lessons from real supply-disruption response.
- INSA-CSTIP policy brief (May 2026): proposes a phased, four-pillar coordination framework across India’s energy sectors, with CCUS and circular economy flagged as cross-cutting enablers.
- Existing foundational schemes referenced: Saubhagya Scheme (electrification, 2017), Pradhan Mantri Ujjwala Yojana (clean cooking fuel access, 2016).
- Intro: Note India’s strong capacity-expansion track record alongside continued import dependence and rising demand; introduce the INSA framework as a response to growing systemic complexity.
- Body 1 — The four-pillar logic: Explain adequacy, access, affordability, appropriate sustainability, and why an integrated systems view strengthens each pillar.
- Body 2 — Implementation challenges: Advisory (non-binding) status, federal/inter-ministerial coordination difficulty, underspecified institutional mechanism, potential pillar trade-offs.
- Conclusion: A unified framework is conceptually sound and timely, but its value depends on translating four pillars into an accountable institutional architecture.
With reference to the INSA policy brief on a unified national energy framework (2026), consider the following statements:
1. It proposes a framework built around four pillars — adequacy, access, affordability, and appropriate sustainability.
2. It identifies Carbon Capture, Utilisation and Storage (CCUS) as one of the four core pillars of the framework.
3. It was released by the Indian National Science Academy’s Centre for Science, Technology, Innovation and Policy.
Which of the statements given above are correct?
Statement 1 — Correct. The four pillars are adequacy, access, affordability, and appropriate sustainability.
Statement 2 — Incorrect. CCUS is identified as a cross-cutting enabler, not one of the four core pillars.
Statement 3 — Correct. The brief was released by INSA’s Centre for Science, Technology, Innovation and Policy (CSTIP).


