Coal Chemistry for Energy Security: India's Path to Reducing LPG Import Dependence

The Hindu - Opinion · 3 Jul 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

India's ability to adapt to energy shocks through refinery flexibility highlights the need for similar investments in coal chemistry to reduce LPG import dependence, leveraging domestic coal reserves for dimethyl ether (DME) production.

Key points

Refinery Flexibility: India's refineries demonstrated exceptional adaptability during the Strait of Hormuz crisis, processing diverse crude types due to sustained investments in R&D and workforce training.

LPG Production Surge: Under the LPG control order, domestic production increased from 35 TMT/day to 54 TMT/day within five days, showcasing engineering capability to absorb supply shocks.

Structural Vulnerability: Despite refinery flexibility, India's LPG dependence remains concentrated in a few geographies, exposing long-term energy security risks.

Dimethyl Ether (DME): A clean-burning gas producible from coal gasification, DME can blend with LPG (up to 20%) without new infrastructure, offering a domestic alternative to imports.

Economic Impact: A 20% DME blend could save ₹34,000 crore annually by displacing 6.3 million tonnes of LPG imports, significantly reducing foreign exchange outflows.

Coal Reserves: India's vast coal reserves provide a strategic raw material base for DME production, aligning with Atmanirbhar Bharat in energy security.

[GS3-Economy] The shift to DME aligns with India's energy transition goals, reducing import dependence while leveraging existing coal infrastructure for cleaner fuels.

[GS2-Governance] The LPG control order exemplifies how regulatory frameworks can mobilize technical capabilities during crises, a model applicable to coal chemistry development.

Way Forward: India should scale up coal gasification pilot projects, establish a DME blending mandate under Bureau of Indian Standards, and create a dedicated R&D fund for coal chemistry under the National Energy Security Mission.

Key terms

LPG Control Order

A regulatory instrument under the Essential Commodities Act 1955 allowing the government to direct refineries on production priorities. UPSC relevance stems from its use as a crisis management tool and its intersection with food security (PDS kerosene substitution) and women's empowerment (Ujjwala Scheme).

Coal Gasification

A process converting coal into syngas (a mixture of hydrogen, carbon monoxide, and carbon dioxide) through high-temperature reactions. For UPSC, it's significant as a pathway for clean coal utilization, energy security, and reducing import dependence under India's National Coal Gasification Mission 2030.

Dimethyl Ether (DME)

A synthetic, clean-burning alternative fuel producible from coal, biomass, or natural gas. UPSC relevance lies in its potential to reduce LPG imports (a ₹1.2 lakh crore annual expenditure) and its inclusion in the National Policy on Biofuels 2018 as a drop-in fuel for cooking and transport.

Strait of Hormuz

A critical chokepoint between Oman and Iran through which 21 million barrels of oil transit daily (30% of global seaborne trade). For UPSC, it's geopolitically vital as disruptions here directly impact India's energy security and inflation, given 60% of India's oil imports pass through this route.