Coal India and GAIL Consortium: Selected Applicants for Financial Incentive Scheme of Ministry of Coal

India’s Ministry of Coal has reached a significant milestone in its journey toward a sustainable energy future. By announcing the Selected Applicants under Category I and III of its Financial Incentive Scheme for Coal Gasification, the ministry has reaffirmed its commitment to transforming coal into a cleaner energy source. This initiative aligns with the government’s ambitious target of achieving 100 million tonnes of coal gasification by 2030.

Selected Applicants: Pioneers of Coal Gasification in India

The announcement includes key players who will spearhead the coal gasification initiative:

• Category I (Government PSUs / JVs of Government PSUs):

• • • Bharat Coal Gasification and Chemicals Limited
    • Coal India Limited (for CIL – GAIL Consortium)
    • Coal India Limited

• Category III (Demonstration Projects / Small-Scale Product-based Plants):

• • New Era Cleantech Solution Private Limited

These selected entities demonstrate the growing confidence in coal gasification’s potential to revolutionise India’s energy landscape.

Financial Incentive Scheme: A Catalyst for Clean Energy

The Ministry’s Financial Incentive Scheme, backed by a Cabinet-approved budget of ₹8,500 crore, aims to promote coal and lignite gasification projects. The scheme is categorised as follows:

1. Category I – Government PSUs or Joint Ventures of PSUs.
2. Category II – Commercial-scale gasification plants (not included in this announcement).
3. Category III – Demonstration projects and small-scale plants.

This robust policy framework has garnered substantial interest, with five applications under Categories I and III.

The Broader Vision: Advancing Clean Coal Technologies

Coal gasification offers multiple benefits, including cleaner energy production, reduced greenhouse gas emissions, and the creation of thousands of jobs. By incentivising innovation in this sector, India is taking bold steps to:

• Reduce its carbon footprint.
• Develop sustainable energy alternatives.
• Transition towards an environmentally responsible energy framework.

Coal India and GAIL: Leading the Charge

Coal India Limited and the CIL-GAIL consortium, being among the selected applicants, are poised to lead the charge in this transformative journey. Their involvement underlines the role of public sector undertakings in achieving national energy goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.