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Govt clears ₹37,500 crore coal gasification scheme
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The Union cabinet on Wednesday approved a ₹37,500 crore coal gasification scheme that aims to convert India’s vast coal and lignite reserves into synthesis gas for use as fuel and in the manufacture of fertilisers, chemicals and other products — cutting the country’s dependence on costly energy imports.The Gevra mines in Chhattisgarh, Asia's largest opencast coalmine. (Reuters)The scheme targets gasification of approximately 75 million tonnes (MT) of coal and lignite, advancing the national goal of gasifying 100 MT by 2030. India’s import bill for key substitutable products — liquefied natural gas (LNG), urea, ammonium nitrate, ammonia, coking coal, methanol, dimethyl ether (DME) and others — stood at approximately ₹2.77 lakh crore in FY25, a vulnerability the government says has been further exposed by the ongoing geopolitical situation in West Asia.Union information and broadcasting minister Ashwini Vaishnaw, who briefed the media after the cabinet meeting chaired by Prime Minister Narendra Modi, called it a “major decision” towards self-reliance in gas. “Coal is abundantly available in India,” he said, adding that the country holds 401 billion tonnes of known coal reserves — enough for the next 200 years. India currently produces natural gas sufficient to meet only half its requirements, with the rest imported, he said.India’s import dependence for urea stands at 20%, for ammonia at nearly 100%, and for methanol at about 90%. The country imports over 50% of its LNG requirements.Under the scheme, investors will receive a financial incentive of up to 20% of the cost of plant and machinery, disbursed in four equal instalments tied to project milestones. Eligible investors will be selected through competitive bidding, with an evaluation framework benchmarking project cost, coal input, and syngas output.The incentive for any single project is capped at ₹5,000 crore; for any single product — except synthetic natural gas (SNG) and urea — ₹9,000 crore; and for any single entity group across all projects at ₹12,000 crore. The scheme is technology-agnostic, though adoption of indigenous technologies is encouraged.In an accompanying reform, the government has extended coal linkage tenure to 30 years under the “Production of Syngas leading to Coal Gasification” sub-sector of the non-regulated sector (NRS) linkage auction framework, providing long-term policy certainty for investors.The government launched its coal gasification mission in 2020, set the 100 MT target for 2030, and approved two flagship joint venture projects — a CIL-GAIL coal-to-SNG plant in West Bengal and a CIL-BHEL coal-to-ammonium nitrate plant in Odisha, together worth over ₹24,000 crore — at a Cabinet meeting in January 2024. Neither has produced commercial output. The entire ₹300 crore allocated for coal gasification in FY26 remained unspent as of January 2026, HT reported on April 14 citing government records.The government expects the scheme to now mobilise investment of about ₹3 lakh crore and generate approximately 50,000 direct and indirect jobs across 25 projects in coal-bearing regions. Coal and lignite utilisation under the scheme is projected to yield ₹6,300 crore annually in exchequer revenue, in addition to downstream GST and other levies.India holds one of the world’s largest coal reserves — over 401 billion tonnes — alongside lignite reserves of about 47 billion tonnes. Coal accounts for over 55% of the country’s energy mix. Gasification converts coal and lignite into synthesis gas, a feedstock for producing fuels, fertilisers, and chemicals domestically, enabling India to substitute high-value imports and reduce exposure to global supply disruptions and price volatility.
Shares of Godrej Consumer Products slipped 5.5% to an intraday low of Rs 1,035 on the BSE on Thursday, despite the company reporting a 9.7% year-on-year rise in Q4 net profit to Rs 452 crore, driven by steady volume growth and strong performance across key categories. Revenue for the quarter rose 11% to Rs 3,900 crore from Rs 3,514 crore a year earlier. EBITDA also increased 11% to Rs 841.4 crore from Rs 759.2 crore, while EBITDA margin remained unchanged at 21.6%. Consolidated sales in Q4 FY26 grew 11% year-on-year, supported by underlying volume growth of 6%. The standalone business posted volume growth of 8%, with sales rising 10%.Among international markets, Indonesia sales increased 3%, while Africa, the US and West Asia delivered 20% growth. For the full FY26, consolidated sales rose 9% year-on-year, driven by 6% volume growth. Standalone sales grew 8% with volume growth of 6%.What are experts saying?Morgan Stanley has maintained its Equal-weight rating on Godrej Consumer Products with a target price of Rs 1,159, an upside of 6% from current levels. The brokerage expects stronger pricing-led topline growth in Q1 and Q2FY27, although margins could remain under pressure. It noted that the company implemented price hikes across soaps, detergents and home insecticides in April.Morgan Stanley highlighted that the India business reported 8% volume growth, while EBITDA margin remained within the guided range. Management has guided for FY27 EBITDA margins in the 24-26% band. The brokerage also pointed to signs of stabilisation in the Indonesia business following weak performance in earlier quarters. However, it flagged crude oil and palm oil inflation as near-term risks. It added that a warmer summer could support demand for soaps but may negatively impact the home insecticides segment.Motilal Oswal has maintained its “Buy” rating on Godrej Consumer Products with a target price of Rs 1,300, implying a potential upside of 19%.The brokerage said management remains focused on improving domestic business volumes and driving efficiencies across the value chain. It expects the GAUM business to deliver better profitability growth going ahead, while recovery in the Indonesia business is likely to become more meaningful from FY27 as market conditions stabilise.Also read: Paytm shares climb 5% after Q4 results. Do Jefferies and Bernstein see further upside?Management also expressed confidence in sustaining profitability momentum in FY27 despite macroeconomic challenges. Motilal Oswal noted that the company is expanding its total addressable market by entering faster-growing categories such as men’s face wash and toilet cleaners, while continuing to strengthen its core portfolio. It added that consistent efforts have also been made to address profitability and growth gaps in the international business. Given the company’s growth-focused strategy, the brokerage said it remains constructive on GCPL.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Motilal Oswal Financial Services (MOFSL) widened its consolidated net loss to Rs 221 crore in the March-ended quarter from Rs 65 crore in the year-ago period despite reporting a stellar 125% year-on-year growth in its revenue from operations. The topline stood at Rs 2,676 crore in Q4FY26 versus Rs 1,190 crore in the corresponding quarter of the last financial year.The brokerage had reported a net profit of Rs 566 crore in the October-December quarter of FY26. All profit figures are attributable to the owners of the parent.However, MOFSL's operating profit after tax (PAT) surged 25% YoY to Rs 661 crore versus Rs 527 crore in Q4FY25 while rising 8% on a sequential basis compared to Rs 611 crore in Q3FY26. The full-year operating PAT stood at Rs 2,360 crore, growing 16% YoY led by strong growth in the Asset & Private Wealth Management (PWM) business.The topline saw a 27% sequential growth compared to Rs 2,112 crore in Q3FY26. Key takeaways:-- Asset Management (Including Alternates): PAT grew by 63% YoY to Rs 249 crore in Q4, while rising 55% YoY to Rs 798 crore in FY26.-- Total assets under management (AUM) grew by 32% on YoY basis at Rs 1.76 lakh crore, driven by stellar Mutual Fund AUM growth of 31% and Private Alternates AUM growth of 104%. FY26 Net MF Flows market share higher than AUM market share at 6.6% and 2.7% respectively, the company's filing to the exchanges said.-- SIP inflows surged 78% YoY to Rs 16,479 crore with market share of 4.7%. Closed IBEF Fund V raise of Rs 8,350 crore, nearly 2X of its last fund raised.-- MOFSL executed first close of maiden private credit fund in January 2026 with fund raise of Rs 1,700 crore, targeting total raise of Rs 3,000 crore.-- Private Wealth Management: Q4 PAT grew by 18% YoY to Rs 88 crore with net flows growing by 66% to Rs 5,535 crore. For FY26, PAT grew by 15% to Rs 368 crore with net flows growing by 41% to Rs 20,154 crore. AUM was up 36% YoY to ₹1.97 lakh Cr, driven by family acquisitions and higher RM productivity.-- Wealth Management: PAT grew by 7% YoY to Rs 204 crore in Q4 and de-grew by 7% to Rs 727 crore for FY26. Q4 brokerage revenue grew by 33% YoY.-- Capital Markets: PAT grew 12% YoY to Rs 75 crore in Q4 and grew 30% YoY to Rs 336 crore in FY26.-- Housing Finance: PAT grew 61% YoY to Rs 59 crore in Q4 and 22% YoY to Rs 159 crore in FY26. AUM grew 19% YoY to Rs 5,829 crore..-- Treasury book grew 12% YoY to Rs 9,403 crore, delivering alpha of 5% for the year FY26. Book grew at 40% CAGR led by strong IRRs and reinvestment of operating profits. FY26 Total PAT (incl OCI) of ₹2,043 Crs is lower than Operating PAT due to Treasury book’s Mark-to-Market accounting.(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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