Cabinet Set to Approve ₹37,500 Crore Coal Gasification Incentive Scheme
Cabinet to soon clear ₹37,500 cr coal gasification incentive scheme
Business StandardImage: Business Standard
The Indian Cabinet is expected to approve a ₹37,500 crore (approximately $4.5 billion USD) incentive scheme to promote coal gasification projects, aimed at enhancing clean energy production and reducing import dependence. This initiative supports the national goal of achieving a coal gasification capacity of 100 million tonnes by 2030.
- 01The proposed scheme has a financial outlay of ₹37,500 crore.
- 02Maximum financial assistance for a single project is ₹3,000 crore.
- 03The initiative aims to reduce dependence on imports of critical commodities.
- 04India has significant coal reserves, estimated at 401 billion tonnes.
- 05Coal gasification is positioned as a strategic move to enhance energy security.
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The Indian government is set to approve a ₹37,500 crore (approximately $4.5 billion USD) incentive scheme designed to promote coal gasification projects across the country. This initiative aims to boost clean energy production and reduce dependence on imports of essential commodities such as liquefied natural gas (LNG), urea, and coking coal. The coal ministry has prepared a Cabinet note outlining the scheme, which is expected to facilitate the development of surface coal and lignite gasification projects, ultimately supporting the national target of achieving a coal gasification capacity of 100 million tonnes by 2030. Under the new scheme, the maximum financial assistance for a single project will be ₹3,000 crore. This move comes in response to recent geopolitical tensions in West Asia, which have highlighted India's vulnerability to disruptions in hydrocarbon supplies. By leveraging its substantial coal reserves, estimated at 401 billion tonnes, India aims to enhance its energy security and reduce import reliance while transitioning towards a cleaner energy economy.
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This scheme could significantly enhance India's energy security by reducing reliance on imported fuels, potentially lowering energy costs for consumers in the long term.
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