Government Broadens 'Indigenous Tech' Definition to Boost Gasification

By siliconindia | Thursday, 23 October 2025, 03:05 Hrs

Foreign-collaborated technologies adapted in India can now qualify as indigenous.
Underground coal gasification projects exempted from proven tech requirement at pilot stage.
Carbon capture and storage technologies allowed in pilot and small-scale gasification projects.

The Ministry of Coal has expanded the definition of 'indigenous technology' under its financial support scheme for coal and lignite gasification, a move aimed at encouraging innovation and investment in cleaner coal projects.

Under the revised guidelines, technologies developed through foreign collaboration or transfer will now be considered indigenous if they have undergone significant adaptation or innovation within India and proven their commercial viability in local conditions. The ministry clarified that technologies developed and substantially proven in India, with related patents or intellectual property, also qualify as indigenous.

The decision follows industry consultations during a pre-bid conference on October 10, after the release of Requests for Proposals (RFPs) on September 30 to attract investors in gasification projects.

In a major relaxation, underground coal gasification (UCG) projects are exempted from the requirement of proven indigenous technology at the pilot stage. The ministry acknowledged that UCG technologies worldwide remain at pilot levels and encouraged India-based demonstrations with a minimum capital investment of Rs 100 crore.

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Additionally, project applicants are now allowed to shift between categories, from demonstration-scale to small-scale, if they meet the new criteria. The ministry, however, retained its rule requiring bidders to maintain a minimum net worth of 30% of their total equity commitment.

In a progressive step, the inclusion of carbon capture, utilization, and storage (CCUS) technology in pilot and small-scale gasification projects has been approved to promote cleaner energy practices.