Govt Awards 41.5 Billion for Coal Gasification Projects

13 Dec 2024 CW Team

The Indian government has granted fiscal incentives totaling Rs 41.5 billion to four entities under its Coal Gasification Initiative. The Letters of Award (LoAs) were issued to BCGCL (a CIL-BHEL joint venture), a CIL-GAIL consortium, Coal India Ltd, and New Era Cleantech Solution Pvt Ltd.

Milestone for Coal Gasification Scheme The initiative is part of the Rs 85 billion Coal Gasification Incentive Scheme. These projects aim to advance coal-based gasification technologies while contributing to energy transition efforts.

Highlights of Approved Projects BCGCL Project in Odisha

Incentive: Rs 13.5 billion Total Investment: Rs 117.68 billion Production Target: 0.66 million tonnes of ammonium nitrate annually. CIL-GAIL Project in West Bengal

Incentive: Rs 13.5 billion Total Investment: Rs 130.53 billion Output: 1.83 million metric standard cubic meters per day (MMSCMD) of synthetic natural gas (SNG). Coal India Ltd Project in Maharashtra

Incentive: Rs 13.5 billion Total Investment: Rs 122.15 billion Output: 1.83 MMSCMD of SNG. New Era Cleantech Solution in Maharashtra

Incentive: Rs 1 billion Total Investment: Rs 6.67 billion Output: 18,000 tonnes of ethanol annually, with carbon capture of 20,144 metric tonnes of CO2 per year. Driving Energy Innovation The Ministry of Coal emphasized the transformative potential of these projects, especially in reducing carbon emissions through advanced technologies such as Carbon Capture, Utilization, and Storage (CCUS).

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