Coal Ministry awards coal-to-acetic acid plant in Gadchiroli under coal gasification incentive scheme
The Ministry of Coal on 29 April 2026 issued a Letter of Award under Category III of Round II of the ₹8,500-crore coal/lignite gasification incentive scheme to Kartikay Vayunandana Pvt Ltd for a ₹793-crore coal-to-acetic acid plant in Gadchiroli, Maharashtra.
Summary
The Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects, with an outlay of ₹8,500 crore, saw its first Letter of Award under Category III of Round II on 29 April 2026. The Ministry of Coal awarded Kartikay Vayunandana Private Limited a small-scale coal-to-acetic acid plant in Gadchiroli, Maharashtra, with an investment of ₹793 crore and an installed capacity of 75,900 tonnes per annum. Category III supports demonstration projects and small-scale product-based plants with assistance of up to ₹100 crore per project or 15% of capex, whichever is lower; seven projects from Round I are already under implementation.
Key facts
- Scheme
- Financial Incentive Scheme for Coal/Lignite Gasification, ₹8,500 crore
- Award
- LoA under Round II, Category III, 29 April 2026
- Awardee
- Kartikay Vayunandana Pvt Ltd
- Project
- Coal-to-acetic acid plant, Gadchiroli (MH); ₹793 crore; 75,900 TPA
- Category III support
- Up to ₹100 crore or 15% of capex, whichever is lower
- Round I
- Seven projects under implementation
Practice MCQs 2 questions
The coal gasification plant awarded on 29 April 2026 under Category III of Round II of the incentive scheme will be set up in which district and produce which chemical?
Show answer
Correct answer: C — Gadchiroli, acetic acid
The LoA was for a small-scale coal-to-acetic acid plant in Gadchiroli, Maharashtra, with a capacity of 75,900 TPA.
Under Category III of the Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects, what is the maximum financial assistance per project?
Show answer
Correct answer: A — ₹100 crore or 15% of capex, whichever is lower
Category III supports demonstration and small-scale product-based plants with up to ₹100 crore per project or 15% of capex, whichever is lower.