Govt nods Rs 8,5000 crore incentive scheme to coal gasification projects

Coal gasification: The Union Cabinet granted approval on Wednesday for a Rs 8,500 crore incentive scheme dedicated to coal gasification projects, according to sources.

This move is anticipated to reduce India's dependence on imports of natural gas, methanol, ammonia, and other vital products, as the adoption of gasification technology gains prominence.

The approved incentive scheme amounts to Rs 8,500 crore and aligns with the government's objective to gasify 100 million tonnes (MT) of coal by the year 2030.

Under the gasification process, coal undergoes partial oxidation by air, oxygen, steam, or carbon dioxide in controlled conditions, resulting in the production of syngas—a versatile fuel. Syngas can be used for power generation and the synthesis of methanol, contributing to the country's energy and chemical production objectives.

(With PTI inputs)