Rs.8,500cr Scheme for Financial Incentive approved
Under the Coal Gasification Mission, Ministry of Coal has set an ambitious target to achieve 100 million tonnes of coal gasification by 2030, supported by Rs.8,500 crore financial incentive scheme http://coalindia.in.
“This is to fulfil India’s dual objective of self-reliance and energy independence,” the Ministry said in a yearend review of the sector https://www.conexpoconagg.com/.
Coal gasification is the process of producing syngas — a mixture consisting primarily of carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2), methane (CH4), and water vapour (H2O) — from coal using controlled heat in a low-oxygen environment https://www.globaltenders.com/.
India has an estimated 389 billion tonnes of coal reserves and gasification offers a pathway for diversifying coal use in a more sustainable manner, said the Ministry https://ted.europa.eu/en/.
“It is more efficient and environmentally friendly, producing lower emissions compared to traditional combustion methods,” added the Ministry. “Syngas, produced through coal gasification, can be utilized for the production of gaseous and liquid fuels, chemical, petrochemicals as well as power generation https://www.bseindia.com/.”
Progress on Scheme:
· Scheme for Financial Incentive of Rs.8,500 crore to coal gasification projects approved by the Cabinet on 24 Jan 2024. Guidelines for implementing the Scheme were issued on 7 Feb 2024.
· Request for Proposal (RFP) for all the 3 categories of financial assistance scheme published on 15 May 2024. List of coal mines with long-term linkage, offered by Coal India Ltd (CIL) for coal gasification projects have also been published on 25 June 2024 https://www.nseindia.com/.
Three applicants under Category-I and one applicant under Category-III have been declared successful. Letters of Award have been issued to them. The timelines for opening of bid for Category-II RFP is 10 Jan 2025.
On 24 Jan 2024, the Cabinet approved CIL’s equity investment exceeding 50% limit in its joint ventures with GAIL and BHEL for setting up coal gasification projects https://sbi.com.in/.
India’s first pilot project for underground coal gasification initiated and drilling has commenced at the Kasta block on 22 June 2024.
Status of the Projects:
Category-I Projects – After technical and financial evaluation, the following projects have been selected for receiving financial incentive as on 2 Dec 2024:
· Project 1: CIL-BHEL JV (Coal to Ammonium Nitrate) – CIL and BHEL incorporated the JV namely Bharat Coal Gasification & Chemicals Limited (BCGCL) on 21 May 2024. Tenders for Lump Sum Turnkey (LSTK) contracts have been issued. Land of 350 acres in Jharsuguda, Vasundhara coal mine has been identified. Topographical survey and geotechnical survey completed. Tenders for LSTK contracts have been issued. Responses to pre-queries published.
· Project 2: CIL-GAIL JV (Coal to SNG) – JV Agreement between CIL and GAIL executed on 05.08.2024. PMC work awarded to PDIL. Land is to be identified. Sonepur Bazari coal mine has been linked to the project. EOI for pre-qualification of licensors of coal gasification technology published on 12 Sept 2024. Bid submission due on 2 Jan 2025.
· Project 3: CIL (Coal to SNG) – CIL and BPCL signed MoU for coal to SNG project at Chandarpur, Maharashtra on 2 Jan 2025. Land of 550 acres and Niljai Extn. OC- Wani area mine has been identified.
Other Projects:
· NLCIL (Lignite to Methanol) – Project located at Nevyeli, Cuddalore, Tamil Nadu. Land of 144 acres identified for the project. LEPC-1 tender for Gasification block, done on 22 Oct 2022, however was cancelled on 1 Apr 2024 due to high quoted price.
· New Era Cleantech Solution (Category-III) -setting up Coal to Ethanol Project (56.7 KTPA) at Maharashtra. Fiinews.com
