Coal gasification projects gain Rs 37,500 crore incentive framework for 100 MT target
Coal gasification projects are set to move into a larger policy-supported phase after the Ministry of Coal approved a Rs 37,500 crore scheme for surface coal and lignite gasification. The scheme provides financial incentive support for selected applicants setting up new gasification plants. Eligible applicants include public-sector companies, private firms, joint ventures and consortiums of up to three companies.
The incentive can go up to 20% of plant-and-machinery cost. This is important because gasification plants require high capital investment, technology selection, integrated feedstock planning and product offtake certainty. The government’s target is to achieve 100 million tonnes of coal gasification by 2030. The import-substitution objective covers LNG, urea, ammonia, methanol and other petrochemicals.
For Coal market news readers, the scheme changes the way domestic coal use is being framed. It is not limited to power generation. It pushes coal into synthesis gas, chemicals, fertiliser intermediates and industrial feedstock chains. For Coal tenders, it can create future demand for technology packages, gasifiers, oxygen plants, material handling, utilities and environmental systems.
EnergylineIndia.com presents this as a strategic coal-to-chemicals policy update. Coal gasification projects will now be judged on more than headline investment. Coal gasification projects need viable technology, bankable offtake and regulatory readiness. Coal gasification projects also need alignment with downstream users. The Rs 37,500 crore incentive makes Coal gasification projects a major area to watch through 2030.