Coal ministry picks applicants for Rs 85 billion gasification scheme

04 Dec 2024 CW Team

The Ministry of Coal recently announced the selected applicants for its Rs 85 billion Coal Gasification Incentive Scheme under Categories I and III. This initiative is part of the government’s efforts to promote cleaner energy solutions and achieve India’s target of 100 million tonnes of coal gasification by 2030.

Under Category I, Bharat Coal Gasification and Chemicals, along with Coal India Limited (both independently and as part of the CIL-GAIL Consortium), have been chosen. Meanwhile, New Era Cleantech Solution has been selected under Category III.

The Union Cabinet-approved scheme focuses on providing financial incentives for coal and lignite gasification projects to reduce carbon emissions, encourage sustainable energy practices, and drive innovation in clean coal technologies.

Category I: Targeted at government PSUs and joint ventures involving PSUs, with Bharat Coal Gasification and Chemicals and Coal India selected.

Category III: Geared towards demonstration projects and small-scale product-based plants, with New Era Cleantech Solution chosen.

The ministry revealed that five applications were submitted under these categories, reflecting the increasing interest in coal gasification technologies. Officials confirmed the successful completion of the selection process, marking progress in India’s transition to cleaner coal solutions.

With a budget of Rs 85 billion, the scheme plays a vital role in India’s energy transition strategy. It aims to advance cleaner coal technologies, generate thousands of jobs, and significantly reduce the nation’s carbon footprint by utilizing domestic coal resources. The initiative also aligns with India’s commitment to climate goals and the development of sustainable energy solutions.

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