The ₹37,500 crore scheme of coal gasification by the Central Government has been well-received by the companies. It was introduced to lessen the dependency on importing urea and synthetic gas. According to a statement made by the Coal Ministry on Tuesday, September 8, seven proposals have come in for this scheme.

Large companies like Adani Enterprises, NTPC, and Talcher Fertilizers have applied. Three proposals have come in for urea plants by Adani Enterprises. Gallant Ispat has applied for producing Direct Reduced Iron (DRI) and syngas.

State-owned company NTPC has proposed for synthetic natural gas plant. Shyam Sail & Power has proposed for syngas plant while Talcher Fertilizers for urea plant. Now these proposals will be scrutinized by the ministry according to the scheme norms and Request for Proposal (RFP).

The scheme's primary objective is to produce syngas by gasifying domestic coal and lignite. Syngas primarily consists of a mixture of gases such as carbon monoxide and hydrogen. This can be used to produce products such as urea, methanol, hydrogen, and synthetic natural gas. The government has set an ambitious target of achieving 100 million tonnes of coal gasification capacity by 2030. The new scheme aims to develop a capacity of 75 million tonnes.

According to the ministry, the scheme is expected to attract investments worth approximately ₹2.5-3 lakh crore. The Union Cabinet approved the scheme on May 13 with a budget of ₹37,500 crore. Several potential applicants are currently preparing their projects. These include pre-feasibility studies and technology assessment. The Ministry of Coal invited applications in July. The first round of applications closed on September 7th, and the second began on September 8th. New opportunities for applications will open every two months.

The government considers coal gasification a key tool to reduce import dependence. In the 2024-25 fiscal year, approximately ₹2.77 lakh crore was spent on imports of LNG, urea, ammonia, and methanol. Domestic coal will provide raw materials for these products, reducing import dependence. Under the scheme, coal and lignite gasification projects will receive financial incentives, covering up to 20% of the eligible cost of plant and machinery. This is a continuation of the ₹8,500 crore incentive scheme approved in January 2024.

The ₹37,500 crore scheme of coal gasification by the Central Government has been well-received by the companies. It was introduced to lessen the dependency on importing urea and synthetic gas. According to a statement made by the Coal Ministry on Tuesday, September 8, seven proposals have come in for this scheme.

Large companies like Adani Enterprises, NTPC, and Talcher Fertilizers have applied. Three proposals have come in for urea plants by Adani Enterprises. Gallant Ispat has applied for producing Direct Reduced Iron (DRI) and syngas.

State-owned company NTPC has proposed for synthetic natural gas plant. Shyam Sail & Power has proposed for syngas plant while Talcher Fertilizers for urea plant. Now these proposals will be scrutinized by the ministry according to the scheme norms and Request for Proposal (RFP).

The scheme's primary objective is to produce syngas by gasifying domestic coal and lignite. Syngas primarily consists of a mixture of gases such as carbon monoxide and hydrogen. This can be used to produce products such as urea, methanol, hydrogen, and synthetic natural gas. The government has set an ambitious target of achieving 100 million tonnes of coal gasification capacity by 2030. The new scheme aims to develop a capacity of 75 million tonnes.

According to the ministry, the scheme is expected to attract investments worth approximately ₹2.5-3 lakh crore. The Union Cabinet approved the scheme on May 13 with a budget of ₹37,500 crore. Several potential applicants are currently preparing their projects. These include pre-feasibility studies and technology assessment. The Ministry of Coal invited applications in July. The first round of applications closed on September 7th, and the second began on September 8th. New opportunities for applications will open every two months.

The government considers coal gasification a key tool to reduce import dependence. In the 2024-25 fiscal year, approximately ₹2.77 lakh crore was spent on imports of LNG, urea, ammonia, and methanol. Domestic coal will provide raw materials for these products, reducing import dependence. Under the scheme, coal and lignite gasification projects will receive financial incentives, covering up to 20% of the eligible cost of plant and machinery. This is a continuation of the ₹8,500 crore incentive scheme approved in January 2024.