In future, surplus coal will be available for coal gasification projects: Source

New Delhi: In the future, there will be surplus coal available, even after meeting the demand of the power sector, for coal gasification, said a source in the Ministry of Coal on Tuesday. A day ago, PSU Watch reported that the Ministry of Coal has invited bids from Public Sector Undertakings (PSUs) and private companies for coal gasification projects. “The country has produced more than 1 BT of coal/lignite during FY2023-24. This year, 1,080 MT is the production target. In the future, there would be surplus domestic coal after meeting the requirements of the power and other sectors. Therefore, with a view to help in import reduction, and to promote coal-to-chemical, gasification is being promoted,” said the source.

PSU Watch is now on Whatsapp Channels. Click here to join

To promote clean coal technologies, the Ministry of Coal has issued a Request for Proposal (RfP) seeking proposals from PSUs, private sector investors, R&D agencies etc, under the scheme for promotion of lignite and coal gasification.

Proposals for setting up coal gasification projects can be submitted till Sept 12

Under the scheme, proposals for setting up coal gasification projects can be submitted till September 12. Under the PSU category, viability gap funding of Rs 1,350 crore per project is eligible. Under category II, mainly private sector investors can avail viability gap support of Rs 1,000 crore, and under category III, the support eligible is Rs 100 crore per project.

To promote coal gasification and ensure an assured supply of coal, the Ministry of Coal has created a separate long-term linkage window for coal gasification. The ministry has also notified a policy under which commercial/captive coal mine owners may utilise their coal for gasification, in lieu of which they get 50 percent incentive on revenue share.

“It is expected that with a comprehensive policy, public/private sector will participate in a big way,” said the source.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)