Coal ministry considering coal gasification scheme with outlay of Rs 6000 crore

financialexpress.com:

The government is considering a comprehensive scheme to promote coal gasification projects for both government public sector undertakings (PSUs) and the private sector with an outlay of Rs 6000 crore. The Ministry of Coal has set a target to achieve coal gasification of 100 Million Tonne (MT) coal by FY 2030 reflecting the government’s commitment to harnessing the power of coal gasification. “The proposal incorporates a comprehensive set of measures that capitalize on natural resources and demonstrate financial and technical feasibility of coal gasification. This initiative is set to meet the future energy needs of the country while stimulating other sectors,” said the Ministry of Coal in a release. 

The adoption of the gasification technology will reduce India’s reliance on imports of natural gas, methanol, ammonia and other essential products. Currently, India imports approximately 50 per cent of its natural gas, over 90 per cent of its total methanol consumption and around 13-15 per cent of its total ammonia consumption to cater to the domestic demand. This will also help create a surge in employment opportunities and make a significant contribution to the nation’s development by reducing imports by 2030. 

“The selection of entities for the coal/lignite gasification scheme will be carried out through a competitive and transparent bidding process. Furthermore, the government is considering providing budgetary support to eligible Government PSUs, and private sector enabling them to undertake coal gasification projects,” the ministry said. 

In the first segment, the government will provide support to Government PSUs. The second segment encompasses both the private sector and Government PSUs, with a budget allocation