Coal Gasification Scheme

awarded

The Union Cabinet approved a ₹37,500 crore package to boost coal gasification in India. The scheme promotes surface coal gasification to convert coal into syngas for producing downstream products like urea, methanol, ammonia, synthetic natural gas, and fertilizers. It aims to gasify approximately 75 million tonnes of coal and lignite, contributing to the 100 million tonnes target by 2030. The scheme includes financial incentives covering up to one-fifth of plant and machinery costs, with caps of ₹5,000 crore for single projects and ₹9,000 crore for single product-centred projects (except SNG and urea). A single entity can avail a maximum of ₹12,000 crore across all projects. The scheme builds on the National Coal Gasification Mission and a previous ₹8,500 crore incentive scheme approved in January 2024, under which eight projects worth ₹6,233 crore are under implementation.