India Accelerates Coal Gasification Initiative with Rs 8,500 Crore Incentive Scheme Awards

The Coal Gasification Incentive Scheme is a cornerstone of India’s broader goal to achieve 100 million tonnes of coal gasification by 2030.

In a major step towards realizing India's ambitious Coal Gasification Initiative, the Ministry of Coal has issued Letters of Award (LOAs) to selected applicants under Category II of the ₹8,500 crore Coal Gasification Incentive Scheme. The LOAs were presented by Shri Vikram Dev Dutt, Secretary of the Ministry of Coal, in the presence of Additional Secretary Ms. Vismita Tej, OSD (Technical) Shri Asheesh Kumar, and Director (Technical) Shri BK Thakur.

Awardees Under Category II (Private Sector/Government PSUs): (For allocation of Rs 1,000 crore per project or 15% of capex, whichever is lower)

1. Jindal Steel and Power Limited

   • Project Location: Angul, Odisha
   • Financial Incentive: ₹569.05 crore
   • Project Details: The ₹3,793 crore project will convert 2 million metric tonnes per annum (MMTPA) of coal into Direct Reduced Iron (DRI) through coal gasification. A key feature of the project is the establishment of a carbon capture and utilization plant designed to capture 30 tonnes per day (TPD) of CO2 for conversion into valuable products.

2. New Era Cleantech Solution Private Limited

   • Project Location: Bhadravati, Chandrapur, Maharashtra
   • Financial Incentive: ₹1,000 crore
   • Project Details: With a total project cost of ₹6,976 crore, this initiative aims to produce 0.33 MMTPA of Ammonium Nitrate and 0.1 MMTPA of Hydrogen. The project will implement Carbon Capture, Utilization, and Storage (CCUS) technology, utilizing captured CO2 for methanol production. The CO2-to-methanol plant will have a capacity of 3,000 TPD (1.0 MMTPA).

3. Greta Energy Limited

   • Project Location: MIDC Bhadravati, Chandrapur, Maharashtra
   • Financial Incentive: ₹414.01 crore
   • Project Details: This ₹2,763 crore project aims to produce 0.5 MTPA of Direct Reduced Iron (DRI) through coal gasification technology.

About the Coal Gasification Incentive Scheme:

The Coal Gasification Incentive Scheme is a cornerstone of India’s broader goal to achieve 100 million tonnes of coal gasification by 2030. The initiative aims to accelerate technological advancements in coal gasification, significantly reduce carbon emissions, enhance energy security and lay the groundwork for a more sustainable energy future.

By promoting projects that integrate carbon capture and utilization, the scheme ensures a dual focus on industrial growth and environmental stewardship, contributing to India's commitment to reducing its carbon footprint while leveraging its abundant coal resources.