+
Cabinet Approves Surface Coal Gasification Promotion Scheme
COAL & MINING

Cabinet Approves Surface Coal Gasification Promotion Scheme

The Cabinet has approved a Scheme for Promotion of Surface Coal and Lignite Gasification Projects with a total financial outlay of Rs.375,000 million (mn) to incentivise new surface gasification facilities aimed at producing synthesis gas and downstream products. The scheme targets gasification of approximately 75 million (mn) tonnes (t) of coal and lignite and is technology agnostic while encouraging indigenous solutions.

Financial support will be provided up to a maximum of 20 per cent of the cost of plant and machinery and will be disbursed in four equal instalments tied to project milestones through a transparent competitive bidding process. Evaluation criteria will benchmark project cost, coal input and syngas output and incentives are additional to benefits under commercial coal mining and other central and state schemes.

Incentive caps are set at Rs.50,000 million (mn) for any single project, Rs.90,000 million (mn) for any single product other than synthetic natural gas and urea, and Rs.120,000 million (mn) for any single entity group across projects. The government has indicated potential investment mobilisation of Rs.2,500,000 million to Rs.3,000,000 million (mn) and the scheme is projected to generate around 50,000 direct and indirect jobs across 25 projects in coal bearing regions.

Annual receipts from coal and lignite utilisation are expected at Rs.63,000 million (mn) from the envisaged 75 million (mn) tonnes (t) of gasification with additional downstream revenue from taxes. India holds about 401 billion (bn) tonnes (t) of coal and 47 billion (bn) tonnes (t) of lignite, and the scheme builds on the National Coal Gasification Mission and an earlier Rs.85,000 million (mn) initiative approved in January 2024 under which eight projects worth Rs.62,330 million (mn) are under implementation.

The Cabinet has approved a Scheme for Promotion of Surface Coal and Lignite Gasification Projects with a total financial outlay of Rs.375,000 million (mn) to incentivise new surface gasification facilities aimed at producing synthesis gas and downstream products. The scheme targets gasification of approximately 75 million (mn) tonnes (t) of coal and lignite and is technology agnostic while encouraging indigenous solutions. Financial support will be provided up to a maximum of 20 per cent of the cost of plant and machinery and will be disbursed in four equal instalments tied to project milestones through a transparent competitive bidding process. Evaluation criteria will benchmark project cost, coal input and syngas output and incentives are additional to benefits under commercial coal mining and other central and state schemes. Incentive caps are set at Rs.50,000 million (mn) for any single project, Rs.90,000 million (mn) for any single product other than synthetic natural gas and urea, and Rs.120,000 million (mn) for any single entity group across projects. The government has indicated potential investment mobilisation of Rs.2,500,000 million to Rs.3,000,000 million (mn) and the scheme is projected to generate around 50,000 direct and indirect jobs across 25 projects in coal bearing regions. Annual receipts from coal and lignite utilisation are expected at Rs.63,000 million (mn) from the envisaged 75 million (mn) tonnes (t) of gasification with additional downstream revenue from taxes. India holds about 401 billion (bn) tonnes (t) of coal and 47 billion (bn) tonnes (t) of lignite, and the scheme builds on the National Coal Gasification Mission and an earlier Rs.85,000 million (mn) initiative approved in January 2024 under which eight projects worth Rs.62,330 million (mn) are under implementation.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code