Govt issues LoAs to selected applicants under financial incentive scheme for coal gasification

New Delhi: The Ministry of Coal has advanced India’s ambitious coal gasification initiative by issuing Letters of Award (LoAs) to selected applicants under Category-II of the Rs 8,500 crore Coal Gasification Incentive Scheme. The LoAs were presented by Vikram Dev Dutt, Secretary, Ministry of Coal, in the presence of Additional Secretary Vismita Tej, OSD (Technical) Asheesh Kumar, and Director (Technical) BK Thakur.

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The awards under Category-II of the scheme are aimed at private sector entities and government PSUs, providing financial support of up to Rs 1,000 crore per project or 15 percent of the capital expenditure, whichever is lower. The initiative is designed to promote coal gasification technology, which plays a crucial role in reducing carbon emissions and enhancing energy security while supporting India’s target of achieving 100 million tonnes of coal gasification by 2030.

Jindal Steel and Power Limited (JSPL) has been granted Rs 569.05 crore for its 2 MMTPA coal gasification project at Angul, Odisha. With a total investment of Rs 3,793 crore, the project will convert coal into Direct Reduced Iron (DRI) through coal gasification. Additionally, the project will incorporate a carbon capture and utilization plant with a capacity to capture 30 tonnes per day (TPD) of CO₂, which will be used to produce valuable products, contributing to environmental sustainability.

New Era Cleantech Solution Private Limited received a financial incentive of Rs 1,000 crore for its coal gasification project in Bhadravati, Chandrapur, Maharashtra. The project, with a total cost of Rs 6,976 crore, aims to produce 0.33 MMTPA of Ammonium Nitrate and 0.1 MMTPA of Hydrogen. It will also implement Carbon Capture, Utilization, and Storage (CCUS) technology, utilizing captured CO₂ for methanol production. The CO₂-to-methanol plant is planned to have a capacity of 3,000 TPD (1.0 MMTPA), contributing to a circular carbon economy.

Greta Energy Limited has been awarded Rs 414.01 crore for its coal gasification project at MIDC Bhadravati, Chandrapur, Maharashtra. With a total investment of Rs 2,763 crore, the project aims to produce 0.5 MTPA of Direct Reduced Iron (DRI). This initiative aligns with India’s goal of reducing carbon emissions and promoting cleaner industrial processes.

The Coal Gasification Incentive Scheme is a strategic step towards fostering technological advancements in coal gasification. It aims to create a sustainable energy landscape by enhancing energy security, reducing carbon emissions, and promoting the use of cleaner coal technologies. This initiative not only supports the nation’s energy transition goals but also stimulates economic growth by encouraging private sector participation and investment in advanced coal utilization technologies.

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