Coal gasification projects of over 22 MT capacity under implementation

Coal gasification projects with a combined capacity of 22.6 MTPA are operational or under implementation, with a new Rs 37,500 crore scheme aimed at accelerating capacity addition.

Coal gasification projects with a capacity of 22.6 million tonnes per annum (MTPA) are currently operational or under implementation, Minister of State for Coal Satish Chandra Dubey said in a written reply in Parliament on Monday.

 

This includes 8 MTPA of capacity being set up by Jindal Steel Limited (JSL), 2.6 MTPA of capacity being set up by Talcher Fertilisers Limited (TFL), and eight projects with a combined capacity of 12 MTPA approved under the ₹8,500 crore financial incentive scheme.

 

In order to achieve the national target of gasifying 100 MT of coal, the government approved a new scheme in May this year for the promotion of surface coal and lignite gasification projects with a financial outlay of ₹37,500 crore.

   

"The new scheme is expected to utilise approximately 75 MTPA of coal and thus substantially contribute towards achieving the national target of 100 MT coal and lignite gasification," Dubey said, adding that the government has strengthened the incentive framework under the scheme to attract greater investment.

 

Under the previous ₹8,500 crore scheme, approved in January 2024, the eligible financial incentive was 15 per cent of the capital expenditure, subject to prescribed ceilings, while the new ₹37,500 crore scheme provides financial incentives of up to 20 per cent of the eligible plant and machinery cost for the establishment of coal and lignite gasification projects.

 

The government is promoting the production of coal-to-chemicals, methanol and synthetic natural gas through coal gasification by providing financial incentives, facilitating coal availability, strengthening regulatory support, simplifying approvals, promoting indigenous technologies, and creating an enabling policy framework to strengthen India's energy security.