Coal Ministry Awarded Incentives Under Coal Gasification Incentive Scheme

On February 12, 2025, the Ministry of Coal took a major step forward in India’s Coal Gasification Initiative with the issuance of Letters of Award (LOAs) to selected applicants under Category II of the ₹8,500 crore Coal Gasification Incentive Scheme. In this read, we will have a look at those companies that received contracts under the Coal Gasification Incentive Scheme

Jindal Steel and Power Limited

Jindal Steel and Power Limited has been awarded ₹569.05 crore in financial incentives for its 2MMTPA coal gasification project in Angul, Odisha. The ₹3,793 crore project will convert coal into Direct Reduced Iron (DRI) through coal gasification and include a carbon capture and utilization plant designed to capture 30 TPD of CO2 for conversion into valuable products.

New Era Cleantech Solution Private Limited

A financial incentive of ₹1,000 crore has been granted to New Era Cleantech for its coal gasification project in Bhadravati, Chandrapur, Maharashtra. With a total project cost of ₹6,976 crore, the initiative aims to produce 0.33 MMTPA of Ammonium Nitrate and 0.1 MMTPA of Hydrogen. The project will also implement Carbon Capture, Utilization, and Storage (CCUS) technology, using captured CO2 for methanol production. The CO2-to-methanol plant will have a capacity of 3,000 TPD (1.0 MMTPA).

Greta Energy Limited 

Greta Energy has been awarded ₹414.01 crore for its coal gasification project at MIDC Bhadravati, Chandrapur, Maharashtra. With a total investment of ₹2,763 crore, the project aims to produce 0.5 MTPA of Direct Reduced Iron (DRI).

The Coal Gasification Incentive Scheme is central to India’s goal of reaching 100 million tonnes of coal gasification by 2030. This initiative is designed to accelerate technological progress in coal gasification, reduce carbon emissions, enhance energy security, and lay the groundwork for a more sustainable energy future.

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