Notified price for coal gasification soon: Coal Ministry
coal gasification projects in the country, the Ministry of Coal is planning to offer coal at a notified price for coal gasification, a senior ministry official said on Wednesday.
«We are considering offering coal at a notified price for coal gasification plants that will be set up. We will be making a policy for the same so that the industry does not face a shortage of coal,» said Nagaraju Maddirala, the Additional Secretary, Ministry of Coal at a roadshow in Mumbai, held to push coal gasification projects.
Notified pricing means coal will be made available at a cheaper rate than its auction rate. Currently, only the power sector receives coal at a notified price. Other sectors avail of coal at auction prices.
He added that this year on, coal production in the country will touch a billion tonnes and by 2030, it will be around 1.5 billion tonnes of capacity.
Coal Gasification is a thermo-chemical process that converts coal into carbon monoxide and hydrogen, called synthesis gas or syngas. The combustion of this gas is cleaner than combustion of coal given emissions are trapped at the gasification stage.
«We want to find diversified uses for coal and ensure energy security for the country. Now that we have increased the financial support, we are confident that the industry will rise up to this opportunity,» added Nagaraju.
Last month the Union Cabinet gave its nod to the Ministry of Coal's proposal of rolling out the ambitious coal and lignite gasification programme, under which viability gap funding (VGF) worth
