New Delhi, May 3 (IANS). The Central Government is preparing to give a new incentive package to promote coal gasification projects in the country and its outlay is estimated to be more than Rs 35,000 crore. This information was given quoting sources.
This is being considered an extension of the Rs 8,500 crore incentive program launched by the Coal Ministry in January 2024, which laid the foundation for coal gasification in the country.
The proposed scheme under consideration by the Union Cabinet aims to accelerate surface coal and lignite gasification projects across the country, thereby promoting self-reliance by reducing import dependence on LNG, urea, ammonium nitrate and ammonia. The plan also aims to accelerate progress towards achieving the ambitious national target of 100 million tonnes of coal gasification capacity by 2030.
Coal gasification is being promoted in the country at a time when the supply chain of LNG, fertilizers and fertilizer raw materials remains disrupted due to the Middle East conflict.
In February this year, the Coal Ministry had announced that it has issued Letters of Award (LOA) to applicants selected under Category II of the Rs 8,500 crore Coal Gasification Incentive Scheme launched with the aim of reducing the country’s carbon emissions and strengthening energy security.
Under Category II of the scheme, private companies and public sector undertakings (PSUs) have been allocated Rs 1,000 crore per project or 15 per cent of the capital expenditure (capex), whichever is lower.
Jindal Steel & Power Limited’s 2 mmpa coal gasification project at Angul, Odisha has been given financial incentive of Rs 569.05 crore. In this Rs 3,793 crore project, coal will be converted into Direct Reduced Iron (DRI) through coal gasification.
New Era Cleantech Solutions Pvt Ltd has been given a financial incentive of Rs 1,000 crore for its coal gasification project located at Bhadravati in Chandrapur district of Maharashtra. The project, with a total project cost of Rs 6,976 crore, aims to produce 0.33 million metric tonnes of ammonium nitrate and 0.1 million metric tonnes of hydrogen per year.
Similarly, Greta Energy Limited has been given financial incentive of Rs 414.01 crore for its coal gasification project located at MIDC in Bhadravati district of Chandrapur district of Maharashtra.
The Coal Gasification Initiative aims to accelerate technological progress in coal gasification, substantially reduce carbon emissions, strengthen energy security and lay the foundation for a more sustainable energy landscape.
–IANS
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