The Centre is set to greenlight a new financial incentives package this month to boost coal gasification projects with an estimated outlay exceeding Rs 35,000 crore. This initiative, an expansion of the earlier Rs 8,500 crore program from January 2024, aims to propel coal gasification in India. The proposed scheme, awaiting Union Cabinet approval, targets advancing surface coal and lignite gasification projects nationwide to enhance self-reliance and reduce import reliance on LNG, urea, ammonium nitrate, and ammonia.
The move to enhance coal gasification efforts is a response to supply chain disruptions in LNG, fertilizers, and feedstock triggered by the Middle East conflict. The Ministry of Coal, earlier this year, issued Letters of Award to selected applicants under Category II of the Rs 8,500 crore Coal Gasification Incentive Scheme. This scheme is geared towards curbing carbon emissions and fortifying energy security. Private companies and PSUs have been awarded financial incentives under Category II, receiving Rs 1,000 crore per project or 15% of the capital expenditure.
Jindal Steel and Power Limited secured Rs 569.05 crore for its 2 MMTPA coal gasification project in Angul, Odisha, aimed at producing Direct Reduced Iron (DRI) through coal gasification. New Era Cleantech Solution Private Limited received Rs 1,000 crore for its coal gasification project in Bhadravati, Chandrapur, Maharashtra, targeting ammonium nitrate and hydrogen production. Greta Energy Limited was granted Rs 414.01 crore for its coal gasification project in MIDC Bhadravati, Chandrapur, Maharashtra. These initiatives seek to drive technological advancements, cut carbon emissions, enhance energy security, and lay the groundwork for a sustainable energy future.
