Govt aims 100 mt coal gasification

Currently, India imports around half of its natural gas, most of its methanol and 13-15% of its total ammonia requirement.

Subhash Narayan
Updated15 Jul 2023, 01:31 AM IST
Coal gasification will contribute to India’s vision of becoming self-reliant and create a surge in job opportunities, the statement said. (Mint)
Coal gasification will contribute to India’s vision of becoming self-reliant and create a surge in job opportunities, the statement said. (Mint)

New Delhi: The ministry of coal has set a target to gasify 100 million tonnes of coal by FY 2030 in line with its energy transition plans, it said in a statement.

The ministry is considering a comprehensive scheme, with an outlay of 6,000 crore, to promote coal and lignite gasification projects for both public sector undertakings (PSUs) and the private sector.

Mint first wrote about the government’s plan for a 6,000 crore VGF (viability gap funding) for coal gasification.

“The adoption of gasification technology in India will revolutionize the coal sector, reducing reliance on imports of natural gas, methanol, ammonia and other essential product,” the ministry said.

Currently, India imports around half of its natural gas, most of its methanol and 13-15% of its total ammonia requirement.

Coal gasification will contribute to India’s vision of becoming self-reliant and create a surge in job opportunities, the statement said.

Coal gasification is expected to make significant contribution to India’s development by reducing imports by 2030. This initiative holds the potential to alleviate the environmental burden by reducing carbon emissions and fostering sustainable practices, contributing to India’s global commitments towards a greener future, the statement added.

The selection of entities for the gasification scheme will be carried out through a competitive and transparent bidding process.

The selection PSUs and private sector companies for budgetary support for gasification projects will be done through a tariff-based bidding process, with criteria formulated in consultation with NITI Aayog, the government think-tank.

The ministry is also considering an incentive to reimburse GST compensation cess on coal utilized in gasification projects.

Furthermore, the Ministry highlighted collaborative efforts in advancing Surface Coal Gasification (SCG) projects across Coal India Limited (CIL) coalfields.

In October 2022, strategic bilateral agreements were executed, including a Memorandum of Understanding (MoU) between BHEL & CIL, as well as an MoU between IOCL, GAIL & CIL. These collaborations aim to foster cooperation and expertise in driving the implementation of SCG projects.

The CIL Board has accepted the pre-feasibility reports for three projects which includes ECL, MCL and WCL and has approved the initiation of pre-project activities, such as topography survey, soil investigation and water availability studies. Tendering activities are also being undertaken to arrive at firm prices required for the preparation of a Detailed Feasibility Report (DFR) for the respective projects.

The CIL Board has also given ‘in-principle’ approval for the formation of Joint Ventures as envisaged above. Currently, negotiation and finalization of the Joint Venture agreement are in progress.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:15 Jul 2023, 01:31 AM IST
HomeNewsIndiaGovt aims 100 mt coal gasification

Most Active Stocks

Indian Oil Corporation

166.90
03:58 PM | 12 JUL 2024
-7.6 (-4.36%)

Tata Steel

168.70
03:58 PM | 12 JUL 2024
-0.3 (-0.18%)

Bharat Electronics

333.30
03:59 PM | 12 JUL 2024
-2.25 (-0.67%)

Wipro

560.05
03:56 PM | 12 JUL 2024
25.7 (4.81%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

KPIT Technologies

1,864.00
03:57 PM | 12 JUL 2024
154.25 (9.02%)

Inox Wind

171.90
03:59 PM | 12 JUL 2024
13.85 (8.76%)

Zensar Technologies

768.20
03:29 PM | 12 JUL 2024
50.45 (7.03%)

Coforge

5,950.05
03:29 PM | 12 JUL 2024
386.65 (6.95%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,263.00176.00
    Chennai
    74,699.00757.00
    Delhi
    74,989.00975.00
    Kolkata
    74,190.00-187.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.10
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts