Govt selects JSPL, 2 others for Financial Incentive Scheme

New Delhi: The Government has selected three private entities, including Jindal Steel and Power Limited (JSPL), under category II of the Financial Incentive Scheme to promote coal and lignite gasification projects.

The government, on January 24, 2024, launched the scheme with financial outlay of Rs 8,500 crore to provide viability gap funding (VGF) to promote coal/lignite gasification projects for PSUs and private sector in three categories.

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The Request for Proposals for category-II was issued on May 15, 2024, and technical bids were opened on January 10, 2025. This category has an outlay of Rs 3,850 crore, the ministry said in a statement.

The name of selected applicants for receiving financial incentives under category-II are Jindal Steel and Power Limited (JSPL), New Era Cleantech Solution and Greta Energy Limited.

The names of applicants selected in the category I and III of the scheme have already been announced earlier.

PSUs come under Category I with a provision of Rs 4,050 crore.

They can submit proposals for funding assistance, and three selected projects will receive a maximum grant of Rs 1,350 crore or 15 per cent of project cost, whichever is lower.

Category III, with Rs 600 crore for demonstration or small-scale projects with a maximum outlay per project of Rs 100 crore or 15 per cent of project cost, whichever is lower.

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