Ministry of Coal Signs Agreements to Advance Clean Gasification Projects

The Coal Gasification Financial Incentive Scheme, launched on January 24, 2024, is a flagship initiative by the Government of India.

In a strategic move to further its commitment to clean energy and industrial innovation, the Ministry of Coal has taken a significant step by signing the Coal Gasification Plant Development and Production Agreement (CGPDPA) with the selected entities under Category II of the Coal Gasification Financial Incentive Scheme. This development signals India's growing emphasis on cleaner uses of its abundant coal resources, with strong backing from both the public and private sectors.

Prominent Industry Players Join the Mission

The signing ceremony was held in the presence of key officials from the Ministry of Coal, including Shri Sanoj Kumar Jha, Additional Secretary, Shri Asheesh Kumar, Officer on Special Duty (Technical), and Shri B.K. Thakur, Director (Technical). These officials underscored the importance of the agreements in steering India’s coal sector toward a greener future.

The companies selected under Category II, which includes both Private Sector Enterprises and Public Sector Undertakings (PSUs), are:

• Jindal Steel and Power Limited (JSPL) – A leading player in steel production and energy, JSPL is expected to contribute significantly to the technological aspects of gasification.

• New Era Cleantech Solution Private Limited – A growing name in clean energy innovation, this company is poised to bring new-age solutions to the gasification process.

• Greta Energy and Metal Private Limited – Known for its work in sustainable metal production, Greta Energy’s involvement highlights the cross-sectoral potential of coal gasification.

These partnerships mark a major milestone in public-private collaboration in the clean energy sector.

₹8,500 Crore Scheme Launched to Spur Technological Advancement

The Coal Gasification Financial Incentive Scheme, launched on January 24, 2024, is a flagship initiative by the Government of India. With a financial outlay of ₹8,500 crore, the scheme aims to incentivize the development and deployment of coal gasification technology across India.

The scheme’s goal is ambitious: to achieve 100 million tonnes of coal gasification by 2030. This target will help substitute traditional uses of coal with cleaner, value-added products such as syngas, methanol, hydrogen, and fertilizers, which have vast industrial applications.

The government aims to reduce import dependence, particularly in the chemical and energy sectors, by fostering indigenous coal-based production. In doing so, the initiative is expected to provide a dual benefit—reducing carbon intensity and boosting domestic industrial capability.

Coal Gasification: A Cornerstone of India’s Clean Energy Transition

Coal gasification is emerging as a critical component of India’s clean coal transition strategy. Unlike conventional coal burning, gasification involves converting coal into a gaseous form that can be used for cleaner energy production and industrial feedstock. This process significantly reduces environmental pollutants like sulfur dioxide, nitrogen oxides, and particulate matter.

As part of India’s broader energy security strategy, coal gasification serves multiple strategic goals:

• Environmental Impact Reduction: Helps cut emissions and pollutants associated with coal combustion.

• Energy Security: Utilizes India's vast coal reserves in a cleaner, more efficient manner.

• Economic Development: Spurs investments in high-tech industries, job creation, and infrastructure upgrades.

• Innovation and R&D: Encourages the growth of homegrown technologies and indigenous manufacturing capabilities.

Collaborative Roadmap for the Future

With support from key stakeholders in government and industry, the Ministry of Coal is charting a clear and ambitious roadmap. The CGPDPA not only outlines technical and financial support but also ensures accountability and performance-based outcomes for project developers.

Moreover, the government plans to facilitate faster clearances, promote ease of doing business, and provide policy support to accelerate project implementation. Additional categories under the incentive scheme are also being explored to include more diverse participation from other industrial sectors.

This concerted effort reflects India's resolve to transition toward sustainable industrial development, while still leveraging its coal reserves in a responsible and forward-thinking manner.

The signing of the CGPDPA under Category II is not merely an administrative event—it marks the beginning of a new era in India’s energy and industrial landscape. As private and public stakeholders come together, the coal gasification initiative is set to become a pivotal element of India’s clean energy future, driving innovation, reducing environmental impact, and enhancing national energy resilience.