India may extend bid deadline for coal gasification scheme

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Subscribe to enjoy similar stories. New Delhi: The Union government may extend deadline for submission of bids for projects under the viability gap funding (VGF) scheme for coal gasification. Two people in the know of the development said that some companies have sought extension of the deadline beyond 11 November, the last date for submission as of now.

The requests are being considered and it may be extended, said one of the people mentioned above. The second person said that given the government's intent of establishing a robust coal gasification industry in the country, the coal ministry would like to have as many applicants as possible under the incentive scheme. "Given the requirement of significant time duration for preparing project feasibility reports, the extension may be required," this person added.

In January, the cabinet approved the scheme for the promotion of coal and lignite gasification projects for public sector undertakings (PSUs) and the private sector with an outlay of ₹8,500 crore towards incentive for coal gasification projects under three categories—public, private sectors and startups—for demonstration projects. In the second category, ₹4,050 crore was provisioned for PSUs in which up to three projects will be supported by providing a lump-sum grant of ₹1,350 crore or 15% of capex, whichever is lower. In category III, ₹600 crore was provisioned for demonstration projects (indigenous technology) and/or small-scale product-based gasification plants under which a lump sum grant of ₹100 crore or 15% of capex, whichever is lower.