New Delhi: The Ministry of Coal has issued Letters of Award (LOAs) to successful applicants selected under the Coal Gasification Incentive Scheme. “The Ministry of Coal has reached a significant milestone in India’s Coal Gasification Initiative with the issuance of Letters of Award (LOAs) to the selected applicants under Categories I and III of the ₹8,500 crore Coal Gasification Incentive Scheme. Secretary, Ministry of Coal, Shri Vikram Dev Dutt presented the LOAs in the august presence of Additional Secretary, Ms. Vismita Tej, and Advisor (Projects), Shri Anandji Prasad, OSD (Technical), Shri Asheesh Kumar, Director (Technical), Shri BK Thakur, Ministry of Coal,” said the ministry in a statement.
Under Category I, which includes PSUs / joint ventures of PSUs, Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture of CIL-BHEL has been awarded Rs 1,350 crore of financial incentive under the scheme for its coal gasification project in Lakhanpur, Orissa. With a total investment of Rs 11,768 crore, the project aims to produce 0.66 MMTPA of Ammonium Nitrate.
Another JV formed between CIL and GAIL for setting up a coal gasification project in Sonepur Bazari, West Bengal, has been awarded Rs 1,350 crore of financial incentive under the scheme. This project, costing Rs 13,052.81 crore, will focus on converting coal into Synthetic Natural Gas (SNG) with a production capacity of 1.83 MMSCMD.
The coal-to-SNG project in Niljai Ext. OC Wani Area, Maharashtra, under CIL’s Western Coalfields Ltd has been awarded Rs 1,350 crore of financial incentive under the scheme. The project, with a total cost of Rs 12,214.86 crore, aims for a production capacity of 1.83 MMSCMD of Synthetic Natural Gas.
Under category III, which includes demonstration projects, small-scale product based plants, New Era Cleantech Solution Private Limited’s coal-to-ethanol demonstration project in Chandrapur, Maharashtra, has been awarded Rs 100 crore of financial incentive under the scheme. With a total investment of Rs 667 crore, the project will utilise Carbon Capture, Utilization, and Storage (CCUS) technology, capturing approximately 20,144 MT of CO2 annually while producing 18 KTPA of ethanol.
“The Coal Gasification Incentive Scheme is integral to India’s goal of achieving 100 million tonnes of coal gasification by 2030. This initiative is designed to drive innovation in coal gasification technology, reduce carbon emissions, enhance energy security, and contribute to a sustainable energy future,” said the ministry.
“These projects exemplify India’s unwavering commitment to clean energy innovation and sustainable development. By harnessing advanced technologies and promoting environmentally responsible practices, the Ministry of Coal is shaping a future where energy security coexists with ecological balance. With initiatives like the Coal Gasification Incentive Scheme, India is not just addressing its present energy needs but also setting a global benchmark in clean coal technology, paving the way for a greener and more prosperous tomorrow,” the ministry added.
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