India’s largest power producer, NTPC, is preparing to enter the coal gasification business as part of efforts to diversify its energy portfolio and cut emissions.

According to sources familiar with the plan, the state-owned utility aims to produce between 5 and 10 million tonnes of synthetic gas annually within the next three to four years. A tender for technical consultation is expected before the end of the current fiscal year, while possible project sites are already being considered.

The move supports India’s national target to gasify 100 million tonnes of coal by 2030. The government has also introduced an 85-billion-rupee ($967 million) incentive program to promote coal-to-gas projects that can serve industries like fertilizers and petrochemicals.

Alongside the gasification plan, NTPC is expanding into nuclear energy, scouting land in 16 Indian states for projects expected to add up to 30 gigawatts of nuclear capacity. India currently has just over 8 gigawatts of nuclear power but aims to reach 100 gigawatts by 2047.

The diversification marks a key step for NTPC as it transitions from traditional coal-based generation to a broader, lower-carbon energy mix.