Centre allows 50% concession in revenue share to promote coal gasification

Union Minister of Coal, Mines & Parliamentary Affairs Pralhad Joshi on Friday said the government has allowed concession of 50% in revenue share for coal gasification. The minister also pitched for options like manufacturing Hydrogen from Coal to help India become energy independent.

The minister today in an investor's meeting on 'Coal Gasification - Way Forward' in Mumbai, encouraged the industry players to think about 'coal to Hydrogen'.

He also launched a report 'Roadmap for Coal to Hydrogen', prepared by the Ministry of Coal.

The investor meeting aimed to encourage effective implementation of Coal Gasification projects and also to ensure ease of doing business in this area. It was organised by Coal India and FICCI.

During the meeting, Minister of State for Coal, Mines & Railways Raosaheb Patil Danve said, “Coal Gasification is the need of the hour and a step towards a sustainable future,” adding that the Government aims gasification of 100 million tonnes coal by 2030. 

Danve added that this will generate jobs in both the technical and non-technical sectors.

Coal gasification is considered a cleaner option compared to burning of coal. Gasification facilitates utilization of the chemical properties of coal, the ministry in its statement said.

According to Coal Ministry, to support coal gasification and availability of coal for the sector on concessional rate, Ministry of Coal has introduced a policy for concessions of 50% in revenue share for commercial auction of coal blocks. If the successful bidder consumes the coal produced either in its own plant(s) or plant of its holding, subsidiary, affiliate, associate for coal gasification or liquefaction or sells the coal for coal gasification or liquefaction on an yearly basis, subject to conditions that at least 10% of scheduled coal production as per approved mining plan for that year shall be consumed or sold for gasification or liquefaction, then the bidder can avail of concessions.

Further, the ministry highlighted that Syn-Gas produced from coal can be used to produce Gaseous Fuels such as Hydrogen (Blue coupled with CCUS), Substitute Natural Gas (SNG or Methane), Di-Methyl Ether (DME), Liquid Fuels such as Methanol, Ethanol, Synthetic diesel and Chemicals like Methanol derivatives, Olefins, Propylene, Mono-Ethylene Glycol (MEG), nitrogenous fertilizers including Ammonia, DRI, Industrial Chemicals along with Power Generation.

"These products will help move towards self-sufficiency under Atmanirbhar Bharat Abhiyaan," the ministry said.