Last Update 24 April 2023

Why coal gasification may play a pivotal role in India's energy mix

SCG projects are pushed by GoI to attract more private investments.


Coal gasification may play a pivotal role in India's energy mix in the coming decade. Globally, energy prices especially that of gas are going up and in this milieu it becomes quintessential for India to evaluate all possible alternatives to reduce the import burden induced from LNG sourcing.

"A fast-growing economy like India needs greater investment in coal production and gasification projects" - Mrs. N.Sitharaman, Finance Minister -GoI.

Therefore,  the Coal ministry is in the works to design a detailed policy framework in order to incentivise private sector companies for developing coal gasification projects. The policy is most likely aimed at providing capital subsidy, tax exemption and assured availability of coal and could possibly be ready by May 2023.



Mr. Ravi Shekhar, Director & Head, of Eninrac Consulting says “Surface coal gasification (SCG) might evolve as a preferential alternative to substitute the burden of importing LNG in India substantially. Additionally, with coal to chemical tapping opportunity of producing methanol, ammonia and ammonium nitrate it could lead as a catalyst for India’s reduction in import volumes of these chemicals. For instance, the country imports 92% of Methanol for its consumption which has diversified end use extending from olefins to gasoline blending options. Separate auction window of coal from CIL, allocation of ear-marked land for development of SCG projects, dedicated policy for methanol blending programs such as M15, M85 and M100, incentivizing the domestic off-take of methanol and incentivizing revenue share of coal block auction may serve as the right fillip to push enhanced SCG ecosystem in the country. Essentially different models could serve as potential for SCG projects like capital grant, hybrid model and operational grant model as per interests of the industry and Government”
The policy will aim to incentivize private sector companies for developing coal gasification projects, Ministry of Coal has formulated a policy wherein, a provision has been made for 50% rebate in revenue share for all future commercial coal block auctions for the coal used in gasification purpose provided the coal quantity used for gasification is at least 10% of total coal production. Further, separate auction window under NRS sector has been created for making coal available for new coal gasification plants.

- Communications Team




BEST VISION IS INSIGHT

Combine market knowledge and your skill to contribute value for end consumers

pm-kusum-scheme-011.jpg

State Wise Progress under PM-KUSUM Scheme - India

Read more  →
details-ipp-geoa-karnataka-05.jpg

Details of IPPs under Green Energy Open Access in Karnataka

Read more  →
re-landscape-ap-01.jpg

Renewable Energy Landscape in Andhra Pradesh

Read more  →

Get started with
EI Market personalised demo

Complete the form to get in touch with our sales team to see our Visionboard platform in action. We'll show you how you can use eninrac to build a culture of action of consistently hunting down and eliminating poor market research expriences across your companies line of business

power by why
REQUEST DEMO
By providing this information, you grant consent that we may process your personal data in accordance with our Privacy Statement.
By submitting this form, you grant consent to receive marketing information from eninrac as set out in our Terms of Service & Privacy Statement. You may unsubscribe at any time.
budget India Budget