TFP Bureau, New Delhi, March 06, 2024: The Ministry of Coal has embarked on a pivotal initiative by issuing three draft Requests for Proposals (RFPs) to solicit feedback from both Government PSUs and Private Investors regarding the establishment of coal gasification plants in India. This move follows the Cabinet’s endorsement of a financial assistance scheme, earmarking ₹ 8500 crores to incentivize coal gasification projects across the country, categorized into three distinct segments.
Separate draft RFPs have been issued for each category delineated under the scheme. Under Category I, Government PSUs stand to receive Rs. 4,050 crores to support up to three projects, with a lump-sum grant capped at Rs. 1,350 crores or 15% of the capital expenditure, whichever is lower. Category II, allocating Rs. 3,850 crores, extends support to both the Private Sector and Government PSUs, offering a similar lump-sum grant of Rs. 1,000 crores or 15% of the capital expenditure per project. Notably, at least one project in Category II will undergo a tariff-based bidding process. Category III, with an allocation of Rs. 600 crores, targets Demonstration Projects and small-scale Gasification Plants, providing a lump-sum grant of Rs. 100 crores or 15% of the capital expenditure to eligible entities.
Stakeholder engagement has been initiated through the circulation of three Requests for Proposal (RFPs), inviting feedback until March 20, 2024. All concerned parties are encouraged to contribute their insights and suggestions via email: hitlar.singh[at]nic[dot]in. This proactive approach underscores the Ministry’s commitment to advancing coal gasification projects, with the aim of finalizing the RFPs by the end of March 2024.
