Last Updated on 21 July 2025 by BIZNAMA NEWS
Posted on .AMN
The Government has taken the following initiatives to promote coal and lignite gasification in the public and private sectors-
- On January 24, 2024, the Government has approved an incentive scheme for promotion of coal and lignite gasification projects for PSUs and private sector with an outlay of ₹ 8,500 crore.
- The Government has also approved investment by Coal India Limited (CIL) in joint ventures of Coal India Limited – Bharat Heavy Electricals Limited (CIL-BHEL) and Coal India Limited – Gas Authority of India Limited (CIL-GAIL) for undertaking coal gasification projects. Both JV companies have now been established.
- In 2022, a new sub-sector, “Production of Syngas leading to coal gasification,” was created under the Non-Regulated Sector (NRS) linkage auctions policy to support coal gasification initiative.
- The Government has allowed coal supply to gasification projects under the NRS auction with a floor price at the notified price of the regulated sector, for the projects commissioning within the next seven years.
- 50% rebate in the revenue share for coal used in gasification has been introduced in commercial coal block auctions, provided that at least 10% of the total coal production is used for gasification purposes.
- A framework has been established for granting waivers from registration for Transfer of Technology (ToT) from land-border-sharing countries on a case-by-case basis. Waiver to one application has been granted.
The aforesaid ₹8500 crore financial incentive scheme has the following three categories against which a total of 7 (seven) projects have been approved–
- Category I – with a provision of ₹4,050 crores under which only PSUs were entitled to apply, a total of three projects with Government assistance of ₹1,350 crores each have been approved.
- Category II – with a provision of ₹3,850 crores under which both private sector and PSUs were entitled to apply, a total of three private sector projects with Government assistance amounting to ₹1,983.06 crores have been approved.
- Category III – with a provision of ₹600 crores for demonstration or small-scale projects, one private sector project with ₹100 crores of Government assistance has been approved.
This information was given by Union Minister of Coal and Mines Shri G. Kishan Reddy in a written reply in Rajya Sabha today.
