TFP Bureau, New Delhi, January 25, 2024: The Cabinet, led by Prime Minister Shri Narendra Modi, has granted approval to a comprehensive scheme aimed at promoting Coal/Lignite Gasification Projects within Government Public Sector Undertakings (PSUs) and the Private Sector. The scheme, with an impressive outlay of Rs.8,500 crore, focuses on providing incentives for coal gasification initiatives, classifying them under three distinct categories.
Outlined specifics of the approved scheme are as follows:
1. A total outlay of Rs.8,500 crore will be allocated to offer financial assistance for coal gasification projects across three categories.
2. Category I: Rs.4,050 crore is earmarked for Government PSUs, supporting up to three projects by providing a lump-sum grant of Rs.1,350 crore or 15% of the capital expenditure, whichever is lower.
3. Category II: Rs.3,850 crore is allocated for both the private sector and Government PSUs. Each project within this category will receive a lump-sum grant of Rs.1,000 crore or 15% of the capital expenditure, whichever is lower. Additionally, at least one project will undergo a tariff-based bidding process, with criteria designed in consultation with NITI Aayog.
4. Category III: Rs.600 crore is set aside for Demonstration Projects (utilizing indigenous technology) and/or small-scale product-based Gasification Plants. The selected entity in this category, with a minimum Capex of Rs. 100 Crore and a minimum production of 1500 Nm3/hr Syn gas, will receive a lump-sum grant of Rs.100 crore or 15% of the capital expenditure, whichever is lower.
5. The selection process for entities falling under Category II and III will be conducted through a competitive and transparent bidding process.
6. The grant disbursement to the selected entity will occur in two equal installments.
7. The Empowered Group of Secretaries (EGoS) chaired by the Secretary of Coal will possess full authority to make necessary changes in the scheme’s modalities, provided the overall financial outlay remains within the Rs.8,500 crore limit.
