India approves coal gasification scheme

The Union Cabinet of India, chaired by Prime Minister Narendra Modi, approved a Rs 37,500 crore incentive scheme to promote surface coal and lignite gasification projects. Union Information & Broadcasting Minister Ashwini Vaishnaw announced that this initiative aims to accelerate India's coal gasification program, targeting 100 million tonnes of coal gasification by 2030. The scheme is designed to enhance India's energy security, reduce dependence on imports of key products like LNG, urea, ammonia, and methanol, and mitigate the impact of global price volatility and supply chain disruptions. Financial incentives, capped at 20% of plant and machinery costs, will be provided through a competitive bidding process, with disbursements linked to project milestones. The scheme is expected to mobilize investments of Rs 2.5 to Rs 3 lakh crore, create approximately 50,000 direct and indirect jobs, and generate annual revenue of around Rs 6,300 crore from coal and lignite utilization. Additionally, India has extended coal linkage tenure up to 30 years for these projects to provide long-term policy certainty for investors.