Government Awards Contracts to Firms in Major Coal Gasification Initiative

Synopsis

The Ministry of Coal has awarded contracts under the Rs 8,500 crore Coal Gasification Incentive Scheme to promote cleaner energy solutions and reduce carbon emissions in India. Key projects include those by Jindal Steel, New Era Cleantech, and Greta Energy, focusing on innovative gasification technologies.

Key Takeaways

The Ministry of Coal has issued LOAs for the Rs 8,500 crore Coal Gasification Incentive Scheme.
Projects aim to reduce carbon emissions and enhance energy security.
Jindal Steel and New Era Cleantech are among the key benefactors.
The initiative supports India's goal of 100 million tonnes of coal gasification by 2030.
Government commitment to sustainable energy practices is emphasized.

New Delhi, Feb 12 (NationPress) The Ministry of Coal declared on Wednesday that it has distributed letters of award (LOAs) to candidates chosen under Category II of the Rs 8,500 crore Coal Gasification Incentive Scheme -- a program aimed at lowering carbon emissions and enhancing energy security.

Recipients under this scheme's Category II comprise both private enterprises and public sector undertakings (PSUs), receiving Rs 1,000 crore per project or 15 percent of the capital expenditure (capex), whichever is less.

Jindal Steel and Power Limited has been granted Rs 569.05 crore for its 2MMTPA coal gasification project located in Angul, Odisha. The total project cost is Rs 3,793 crore, which will convert coal into Direct Reduced Iron (DRI) through coal gasification and establish a carbon capture and utilisation plant aimed at capturing 30 TPD of CO2 for transformation into valuable products.

New Era Cleantech Solution Private Limited has received a financial incentive of Rs 1,000 crore for its coal gasification initiative in Bhadravati, Chandrapur, Maharashtra. This project, with a total cost of Rs 6,976 crore, aims to generate 0.33 MMTPA of Ammonium Nitrate and 0.1 MMTPA of Hydrogen. Additionally, it will incorporate Carbon Capture, Utilisation, and Storage (CCUS) technology, utilizing captured CO2 for methanol production with a proposed capacity of 3,000 TPD (1.0 MMTPA).

Greta Energy Limited has been allocated Rs 414.01 crore for its coal gasification venture at MIDC Bhadravati, Chandrapur, Maharashtra. With an overall investment of Rs 2,763 crore, the project is projected to produce 0.5 MTPA of Direct Reduced Iron (DRI).

The coal gasification incentive program is crucial to India’s ambitious goal of achieving 100 million tonnes of coal gasification by 2030. This initiative is set to expedite technological progress in coal gasification, drastically diminish carbon emissions, fortify energy security, and lay the groundwork for a more sustainable energy future.

This program highlights the Government’s dedication to promoting sustainable energy practices through gasification technology, aiming to speed up India’s shift to cleaner energy solutions while ensuring energy security.

The LOAs were presented by Vikram Dev Dutt, Secretary of the Ministry of Coal, alongside Additional Secretary Vismita Tej and other senior officials from the Ministry of Coal and key stakeholders.