Cabinet approves Rs 8,500 crore incentive scheme for coal gasification projects

The Union Cabinet on Wednesday approved a Rs 8,500 crore incentive scheme for coal gasification projects, said Union Minister Pralhad Joshi.

The adoption of gasification technology in India is expected to reduce the country's reliance on imports of natural gas, methanol, ammonia and other essential products.

The government is targeting to gasify 100 million tonnes (MT) of coal by 2030.



In gasification process, coal is partially oxidised by air, oxygen, steam, or carbon dioxide under controlled conditions to produce a liquid fuel known as syngas. Syngas or synthesis gas can be used for power generation and to make methanol as well.

The cabinet approved equity investment by CIL for setting up of coal-to-SNG Project at ECL command area through a joint venture of CIL and GAIL. It also gave its nod for setting up of coal-to-ammonium nitrate project at MCL command area through a joint venture of CIL and BHEL.

The plant will be set up in Sambalpur, Odisha. The government has set a target of making the plant operational by 2028-29, said Joshi.