Govt's initiatives for cleaner coal need to be promoted: Economic Survey

The initiatives of the government for cleaner fuel such as coal gasification mission and exploring coal to hydrogen need to be promoted to reduce emission and increase environmental sustainability, the Economic Survey on Monday said.

While phasing in renewables to the extent possible is crucial, in the short to medium term, the focus should also be on actively adopting clean coal technologies.

With the arrival of ultra super-critical technologies for coal-fired power plants, it would be possible to bring down emissions and achieve higher efficiency, the Economic Survey 2023-24 tabled in Parliament said.

"In exploring the landscape for ensuring energy security, it has become evident that risks are not merely obstacles but also harbingers of opportunities. While uncertainties loom, they present avenues for innovation, adaptation, and growth for India. While phasing in renewables to the extent possible is imperative, in the short to medium term, the focus should also be on actively adopting clean coal technologies," it said.

The government has launched National Coal Gasification Mission to achieve coal gasification and liquefaction of 100 million tonne of coal by 2030. In line with the mission document, Coal India Ltd has signed pacts with BHEL, GAIL and IOCL to take up coal gasification projects in the country.

In order to promote coal gasification, the coal ministry has formulated a policy wherein, a provision has been made for 50 per cent rebate in revenue share for all future commercial mines auctions for the coal used in gasification purpose provided the quantity of dry fuel used for gasification is at least 10 per cent of total coal production.

Further, separate auction window under Non-Regulated Sector (NRS) has been created for making coal available for new coal gasification plants.