Union Cabinet Approves Rs 8,500 Crore Incentive Scheme For Coal Gasification Projects

Coal Minister Pralhad Joshi said the adoption of gasification technology in India is expected to reduce the country's reliance on imports of natural gas, methanol, ammonia and other essential products

The government is targeting to gasify 100 million tonnes (MT) of coal by 2030.

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The Union Cabinet on Wednesday approved a Rs 8,500 crore incentive scheme for coal gasification projects. Union Minister for Coal and Mines of India, Pralhad Joshi, on Wednesday in a press briefing said the adoption of gasification technology in India is expected to reduce the country's reliance on imports of natural gas, methanol, ammonia and other essential products.

The cabinet has given its go-ahead to Rs 8,500 crore incentive scheme for coal gasification projects. The government is targeting to gasify 100 million tonnes (MT) of coal by 2030.

In gasification process, coal is partially oxidised by air, oxygen, steam, or carbon dioxide under controlled conditions to produce a liquid fuel known as syngas. Syngas or synthesis gas can be used for power generation and to make methanol as well. 

On the other hand, the Union Minister for Power and New and Renewable Energy R K Singh chaired a meeting of government and industry stakeholders of the iron and steel sector in New Delhi on Wednesday, in order to discuss the pilot projects under the National Green Hydrogen Mission in the sector. Officials of Ministry of New & Renewable Energy, Ministry of Steel and industry representatives from the Iron & Steel sector participated in the deliberations.

the Union Minister underlined the Government’s thrust on energy transition and how this is important for the iron and steel sector as well. He stressed that use of Green Hydrogen in Steel making process can help the decarbonisation of the sector.

“Our idea is to help you to transition. If we use green hydrogen, then carbon content becomes low; so, we need to think of ways and means of doing that.” The Minister added that in the wake of trade barriers being put up by developed countries, energy transition is important for competitiveness of the sector as well.