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The Ministry of Coal has solicited feedback from interested government and corporate entities regarding building coal gasification plants in the country. According to the ministry, three draft requests for proposals (RFPs) for comment on a coal gasification programme have been released.
"Issued three draft RFPs to solicit feedback from interested government PSUs and private investors for the establishment of coal gasification plants in India," it stated in a statement. It stated that stakeholders can submit input and suggestions until March 20.
An earlier approval by the Union Cabinet had authorised ₹8,500 crore to be allocated across three categories for incentives related to coal gasification projects. Draft RFPs have been distributed separately for each of the three categories.
Category I of the scheme allocates ₹4,050 crore to the PSUs to support up to 3 projects, offering a lump-sum grant of Rs 1,350 crore or 15% of the capital expenditure, whichever is lower. In Category II, ₹3,850 crore is earmarked for both the private sector and PSUs, providing each project with a lump-sum grant of ₹1,000 crore or 15% of the capital expenditure.
Additionally, at least one project in this category will undergo a tariff-brd bidding process. Category III includes ₹600 crore for demonstration projects and small-scale gasification plants, offering a lump-sum grant of ₹100 crore or 15% of the capital expenditure to entities with a minimum capex of ₹100 crore and minimum production of 1,500 normal meter cubed per hour of synthesis gas (syngas).
In a separate statement, the ministry said coal plays a pivotal role in India's energy system, accounting for nearly 70% of the total electric generation. It is also a critical input in various industries such as steel, sponge iron, cement, and paper, the ministry said adding multiple measures have been taken to promote usage of clean technology in the coal sector.
The National Coal Gasification Mission aims to gasify 100 million tonnes of coal by 2030 through surface coal/lignite gasification projects. The government has also approved Coal India Ltd's equity investment proposal in the JVs of CIL-GAIL and CIL-BHEL. CIL and Bharat Heavy Electricals Limited have formally signed a joint venture (JV) agreement to establish an ammonium nitrate plant through surface coal gasification (SCG).
The government is also actively engaged in clean coal initiatives such as extracting coal bed methane (CBM) gases, exploring Coal to Hydrogen, Carbon Capture and Storage (CCS), coal beneficiation through washeries, etc., to mitigate emissions and enhance environmental sustainability.
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