Scheme for Promotion of New Surface Coal/Lignite Gasification Projects

planned

A government scheme approved by the Union cabinet to promote conversion of coal and lignite into synthesis gas (syngas) through gasification. The scheme aims to incentivise 25 projects targeting gasification of approximately 75 million tonnes of coal/lignite to enhance energy security and reduce import dependence on products like LNG, urea, ammonia, and methanol. The scheme provides financial incentives up to 20% of plant and machinery costs, with caps on incentives per project, product, and entity group. It encourages adoption of indigenous technologies and expects all projects to be commissioned within four to five years.