Govt launches major coal gasification incentive schemewith ₹8,500 cr funding

Coal has reached a significant milestone in India’s coal gasification initiative with the issuance of letters of award (LOAs) to the selected applicants under categories I and III of the ₹8,500 crore coal gasification incentive scheme.

The Ministry of Coal has reached a significant milestone in India’s Coal Gasification Initiative with the issuance of Letters of Award (LOAs) to the selected applicants under Categories I and III of the ₹8,500 crore Coal Gasification Incentive Scheme. Secretary, Ministry of Coal, Vikram Dev Dutt presented the LOAs in the august presence of Additional Secretary, Vismita Tej, and Advisor (Projects), Anandji Prasad, OSD (Technical) Asheesh Kumar, Director (Technical), BK Thakur, Ministry of Coal.  

In the latest financial incentives under the Scheme, several significant projects have been awarded substantial funding. Under Government PSUs / Joint Ventures of Government PSUs, Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture of CIL and BHEL, has been allocated ₹1,350 crore for its coal gasification project in Lakhanpur, Orissa. This project, with a total investment of ₹11,768 crore, aims to produce 0.66 MMTPA of Ammonium Nitrate. Additionally, the CIL-GAIL Consortium has received ₹1,350 crore for their coal-to-Synthetic Natural Gas (SNG) project in Sonepur Bazari, West Bengal, which has an investment of ₹13,052.81 crore and a production capacity of 1.83 MMSCMD of SNG. Another project by Coal India Limited in Niljai Ext. OC Wani Area, Maharashtra, has also been awarded ₹1,350 crore to support a coal-to-SNG initiative, costing ₹12,214.86 crore with a similar production capacity of 1.83 MMSCMD.

Under Demonstration Projects / Small-Scale Product-based Plants, New Era Cleantech Solution Private Limited has been awarded ₹100 crore for its coal-to-ethanol demonstration project in Chandrapur, Maharashtra. The project, with a total investment of ₹667 crore, will employ Carbon Capture, Utilization, and Storage (CCUS) technology to capture 20,144 MT of CO2 annually and produce 18 KTPA of ethanol.

The Coal Gasification Incentive Scheme is integral to India’s goal of achieving 100 million tonnes of coal gasification by 2030. This initiative is designed to drive innovation in coal gasification technology, reduce carbon emissions, enhance energy security, and contribute to a sustainable energy future.

These projects exemplify India’s unwavering commitment to clean energy innovation and sustainable development. By harnessing advanced technologies and promoting environmentally responsible practices, the Ministry of Coal is shaping a future where energy security coexists with ecological balance. With initiatives like the Coal Gasification Incentive Scheme, India is not just addressing its present energy needs but also setting a global benchmark in clean coal technology, paving the way for a greener and more prosperous.