Centre clears ₹37,500 crore coal gasification scheme, MSP hike for Kharif crops
New Delhi, May 13: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved a series of major policy decisions,…
New Delhi, May 13: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved a series of major policy decisions, including a ₹37,500 crore scheme to promote surface coal and lignite gasification projects, an increase in Minimum Support Prices (MSP) for Kharif crops for the 2026-27 marketing season, and the modernisation of Nagpur International Airport under the Public-Private Partnership (PPP) model.
Cabinet approves ₹37,500 crore coal gasification scheme
The Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects with a financial outlay of ₹37,500 crore.
The initiative aims to accelerate India’s target of gasifying 100 million tonnes of coal by 2030 and reduce dependence on imports of LNG, urea, ammonia, methanol, and other products.
According to the government, the scheme is expected to incentivise new coal and lignite gasification projects targeting around 75 million tonnes of gasification capacity.
Key features of the scheme
- Financial incentive of up to 20% of plant and machinery cost
- Incentives to be disbursed in four phases linked to project milestones
- Maximum incentive capped at ₹5,000 crore per project
- Competitive bidding process for project selection
- Technology-agnostic framework encouraging indigenous technologies
The government also announced the extension of coal linkage tenure up to 30 years under the “Production of Syngas leading to Coal Gasification” category.
Strategic benefits expected
The Centre said the scheme is likely to attract investments worth ₹2.5–3 lakh crore and generate nearly 50,000 direct and indirect jobs across 25 projects in coal-bearing regions.
Officials said the initiative would strengthen India’s energy security, reduce import dependency, and support the Atmanirbhar Bharat and Make in India missions.
India currently imports a significant portion of LNG, ammonia, methanol, and coking coal, with the import bill for such products estimated at around ₹2.77 lakh crore in FY2025.
MSP for Kharif crops increased for 2026-27 season
The Cabinet Committee on Economic Affairs (CCEA) also approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 marketing season.
The government said the decision was taken to ensure remunerative prices for farmers.
Among the major increases:
- Sunflower Seed: MSP increased by ₹622 per quintal
- Cotton: MSP increased by ₹557 per quintal
- Nigerseed: MSP increased by ₹515 per quintal
- Sesamum: MSP increased by ₹500 per quintal
The revised MSP rates are expected to benefit farmers ahead of the upcoming Kharif sowing season.
Cabinet clears Nagpur Airport modernisation under PPP model
In another major decision, the Union Cabinet approved the extension of the lease period of Airports Authority of India (AAI) land leased to MIHAN India Limited (MIL), enabling the modernisation and operation of Nagpur International Airport through private participation.
The move will allow GMR Nagpur International Airport Limited (GNIAL) to operate the airport for 30 years under the PPP model.
The project is part of the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) initiative.
Airport capacity to reach 30 million passengers annually
The government said GNIAL will undertake phased modernisation of Dr Babasaheb Ambedkar International Airport, with plans to expand the airport’s ultimate handling capacity to 30 million passengers annually.
The airport’s cargo handling infrastructure will also be significantly enhanced.
Officials said the project is expected to improve connectivity in the Vidarbha region and strengthen economic and logistics infrastructure in Central India.
The Centre said the airport modernisation reflects the government’s broader push for infrastructure development with private sector participation and improved aviation services.
