SF Prep Notes

Coal Ministry issues awards under ₹8,500 crore coal gasification scheme

The Ministry of Coal issued Letters of Award to selected applicants under Categories I and III of the ₹8,500 crore Coal Gasification Incentive Scheme on 12 December 2024.

Summary

The Ministry of Coal issued Letters of Award (LoAs) to selected applicants under Categories I and III of the ₹8,500 crore Coal Gasification Incentive Scheme on 12 December 2024. Under Category I (₹1,350 crore per project or 15% of capex, whichever is lower), awards went to Bharat Coal Gasification and Chemicals Limited, a CIL-BHEL joint venture, for a 0.66 MMTPA ammonium nitrate project at Lakhanpur, Odisha; to the CIL-GAIL joint venture for a coal-to-synthetic natural gas project at Sonepur Bazari, West Bengal; and to Coal India for a coal-to-SNG project at Niljai, Maharashtra. Under Category III, New Era Cleantech Solution received ₹100 crore for a coal-to-ethanol demonstration project with carbon capture at Chandrapur, Maharashtra. The scheme supports India's goal of 100 million tonnes of coal gasification by 2030.

Key facts

Scheme
₹8,500 crore Coal Gasification Incentive Scheme
Category I cap
₹1,350 crore or 15% of capex, whichever lower
BCGCL (CIL-BHEL)
Lakhanpur, Odisha; 0.66 MMTPA ammonium nitrate
CIL-GAIL
Sonepur Bazari, West Bengal; coal to SNG
CIL
Niljai, Maharashtra; coal to SNG
Category III
New Era Cleantech, Chandrapur; coal to ethanol; ₹100 crore
Target
100 MT coal gasification by 2030

Practice MCQs 2 questions

Q1 Advanced

The Coal Gasification Incentive Scheme supports India's goal of achieving 100 million tonnes of coal gasification by which year?

Show answer

Correct answer: A — 2030

PIB (Coal): the Coal Gasification Incentive Scheme is integral to India's goal of achieving 100 million tonnes of coal gasification by 2030.

Q2 Advanced

Bharat Coal Gasification and Chemicals Limited (a CIL-BHEL joint venture), awarded ₹1,350 crore under the coal gasification scheme in December 2024, is setting up its ammonium nitrate project in which state?

Show answer

Correct answer: D — Odisha

PIB (Coal): BCGCL, a CIL-BHEL joint venture, was awarded ₹1,350 crore for its coal gasification project at Lakhanpur, Odisha, to produce 0.66 MMTPA of ammonium nitrate. The West Bengal and Maharashtra awards were coal-to-SNG and coal-to-ethanol projects.

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