Cabinet Likely to Clear Rs 37,500 Crore Coal Gasification Incentive Scheme Soon – Indian PSU
In a major move to strengthen India’s energy security and cut import dependence, the Union Cabinet is likely to soon approve a Rs 37,500 crore incentive scheme for coal gasification projects, sources said. The Ministry of Coal has already prepared a Cabinet note on the proposal.
The proposed scheme aims to accelerate surface coal and lignite gasification projects across the country and support the national target of achieving 100 million tonnes coal gasification capacity by 2030.
Coal gasification is being positioned as a strategic tool to reduce imports of critical commodities such as LNG, urea, ammonia, ammonium nitrate, methanol, DME and coking coal substitutes, while increasing utilisation of India’s vast domestic coal reserves.
Sources said the fresh proposal is designed as a single unified scheme without category-based divisions, with maximum financial assistance of Rs 3,000 crore for one project.
This marks a major jump from the earlier incentive scheme under which government support was capped at Rs 1,000 crore per project for private players and Rs 1,350 crore for PSUs.
The enhanced package is expected to provide a major boost to both PSUs and private sector companies planning investments in syngas, methanol, fertiliser and clean fuel production.
