New Delhi, Feb 12 The Ministry of Coal announced on Wednesday it has issued letters of award (LOAs) to applicants selected under Category II of the Rs 8,500 crore Coal Gasification Incentive Scheme -- aimed at reducing the country’s carbon emissions and strengthening energy security.
The awardees, under the scheme’s Category II, include private companies and public sector undertakings (PSUs) for the allocation of Rs 1,000 crore per project or 15 per cent of the capital expenditure (capex), whichever is lower.
Jindal Steel and Power Limited’s 2MMTPA coal gasification project at Angul in Odisha, has been awarded Rs 569.05 crore in financial incentives. The Rs 3,793 crore project will convert coal into Direct Reduced Iron (DRI) through coal gasification while also setting up a carbon capture and utilisation plant designed to capture 30 TPD of CO2 for conversion into valuable products.
New Era Cleantech Solution Private Limited has been given a financial incentive of Rs 1,000 crore for its coal gasification project in Bhadravati, Chandrapur, Maharashtra. With a total project cost of Rs 6,976 crore, it aims to produce 0.33 MMTPA of Ammonium Nitrate and 0.1 MMTPA of Hydrogen. Additionally, the project will implement Carbon Capture, Utilisation, and Storage (CCUS) technology, where captured CO2 will be utilised for methanol production. The proposed CO2-to-methanol plant will have a capacity of 3,000 TPD (1.0 MMTPA).
Greta Energy Limited has been awarded Rs 414.01 crore of financial incentive for its coal gasification project at MIDC Bhadravati, Chandrapur, Maharashtra. With a total investment of Rs 2,763 crore, the project aims to produce 0.5 MTPA of Direct Reduced Iron (DRI).
The coal gasification incentive scheme plays a pivotal role in India’s ambitious target of reaching 100 million tonnes of coal gasification by 2030. This initiative is designed to accelerate technological advancements in coal gasification, significantly reduce carbon emissions, bolster energy security, and create a foundation for a more sustainable energy landscape.
The initiative underscores the Government’s commitment to fostering sustainable energy practices through gasification technology. IT aims to accelerate India's transition to cleaner energy solutions while ensuring energy security.
The LOAs were presented by Vikram Dev Dutt, Secretary, Ministry of Coal, in the presence of Additional Secretary Vismita Tej, and other senior officials of the Ministry of Coal and key stakeholders.
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