Rs.8,500cr VGF scheme for gasification projects
The commercial scale Coal Gasification Projects are expected by May 2030 in the country, the Minister of Coal and Mines G. Kishan Reddy said in a written reply in Lok Sabha 7 Aug globaltenders .
He explained that the Ministry of Coal has floated Request for Proposals (RFPs) for seeking applications for setting up of Coal/Lignite Gasification projects under all three categories, as mentioned above.
RFPs provide a time frame of 5 years from the date of execution of agreement of financial incentive scheme bse. As per the timelines, the date of submission of bid is 11 Nov 2024 and the date of execution of Agreement is 13 May 2025 nse.
The Government has launched a Scheme with financial outlay of Rs.8,500 crore to provide viability gap funding (VGF) to promote Coal and Lignite Gasification Projects for both Public Sector Units (PSUs) and the private sector conexpoconagg.
The approved scheme covers projects under following three categories:
Category I: With a provision of Rs.4,050 crores, is for Government PSUs sbi . They can submit proposals for funding assistance, and three selected projects will receive a maximum grant of Rs.1,350 crores or 15% of project cost, whichever is lower.
Category II: With Rs.3,850 crores, is available to both private sector and government PSUs with a maximum grant of Rs.1,000 crores or 15% of project cost, whichever is lower opec.
Category III: With Rs.600 crores for demonstration or small-scale projects with maximum outlay per project of Rs.100 crores or 15% of project cost, whichever is lower iea . Fiinews.com
