Page 58 - FIPI - Policy & Economic Report May 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Strategic and Economic Benefits:

? Expected Investment Mobilisation: Rs.2.5- 3.0 lakh crore

? Energy Security & Import Substitution: Diversified use of coal resources and substitutes imports
of LNG, urea, ammonia, ammonium nitrate, methanol, and coking coal, insulating India from
global price volatility and geopolitical supply-chain disruptions and advancing the Atmanirbhar
Bharat and Make in India objectives.

? Employment Generation: The Scheme is projected to create around 50,000 (Direct + Indirect) jobs
across 25 projects in coal-bearing regions.

? Revenue to Governments: Coal/lignite utilization is expected to generate Rs.6,300 crore annually
from 75 million Tonne of gasification envisaged under the Scheme, plus downstream revenue
from GST and other levies.

? Technology Ecosystem: Strengthens India’s domestic surface coal gasification capability by
advancing indigenous technologies and minimising reliance on foreign EPC contractors.

7. India and EU launched €15.2 million/~?169 crore joint initiative to strengthen EV battery recycling
under the India-EU Trade and Technology Council (TTC)-working group-2

Under the framework of the India-EU Trade & Technology Council (TTC)- Working Group 2 on Green and
Clean Energy Technologies, the Government of India and the European Union announced the launch of a
third coordinated call for proposals focused on the Recycling of EV Batteries on 5 May 2026. The
submission deadline for the same is 15 September 2026.

The call for proposals aims to secure critical raw materials, accelerate the global transition to a circular
economy, and strengthen bilateral relations between India and the European Union (EU). With a
combined funding pool of €15.2 million (~?169 crore), the initiative will be funded through the EU’s
Horizon Europe programme, while the Ministry of Heavy Industries (MHI) will support the Indian
component.

The programme will focus on developing advanced recycling technologies, including high efficiency
material recovery, safe and digitalized collection systems, and pilot-scale demonstration of innovative
processes. It will also support the establishment of a joint India-EU pilot line in India to enable real-world
validation and industrial deployment, bringing together leading researchers, industries, and startups. The
call for proposal will focus on High Recovery Rates; Mixed Chemistry Handling; Logistics & Inclusion and
Safety & Second Life for critical minerals like lithium, graphite, and cobalt.

On the launch of these calls, Prof. Ajay Kumar Sood, Principal Scientific Adviser to the Government of India
remarked that this launch is a pivotal moment in the India-EU strategic partnership. As India’s EV market
continues its rapid expansion, creating a robust domestic recycling ecosystem is essential for our resource
security and environmental commitments.

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