Skip to main content

https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Ministry of Coal Approves ₹793 Crore Coal-to-Acetic Acid Project Under ₹8,500 Crore Gasification Scheme in Gadchiroli 

Coal Ministry issues Letter of Award for Gadchiroli acetic acid plant under Category III scheme, boosting coal gasification, import substitution, and Atmanirbhar Bharat goals.
Indian Masterminds Stories

New Delhi: The Ministry of Coal has taken a major step in advancing India’s coal gasification programme by issuing a Letter of Award (LoA) under Category III of Round II of the ₹8,500 crore Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects.

The award has been granted to Kartikay Vayunandana Private Limited for setting up a coal-to-acetic acid plant in Gadchiroli, Maharashtra.

₹793 Crore Investment for Coal-to-Acetic Acid Plant in Gadchiroli

The approved project involves an investment of approximately ₹793 crore and will establish a small-scale coal gasification-based chemical plant.

Key Project Details:

  • Location: Gadchiroli, Maharashtra
  • Product: Acetic Acid
  • Installed Capacity: 75,900 tonnes per annum (TPA)
  • Project Type: Coal-to-chemicals (gasification route)

The project aims to promote value-added utilisation of domestic coal resources and reduce dependence on imported chemicals.

Read also: Ministry of Coal Launches 15th Commercial Coal Mine Auction to Boost India’s Energy Security

Boost to Coal Gasification Under ₹8,500 Crore Incentive Scheme

The initiative is part of the government’s broader ₹8,500 crore incentive scheme designed to promote coal and lignite gasification projects across India.

Under Category III, the scheme supports:

  • Demonstration projects
  • Small-scale production units
  • Product-based coal gasification plants

Financial assistance includes:

  • Up to ₹100 crore per project, or
  • 15% of capital expenditure (whichever is lower)

This structure is designed to encourage innovation and faster adoption of coal gasification technology in India.

Strengthening Atmanirbhar Bharat Vision

The project is expected to significantly contribute to India’s Atmanirbhar Bharat vision by:

  • Increasing domestic production of industrial chemicals
  • Reducing dependency on imported acetic acid
  • Promoting efficient use of domestic coal resources
  • Supporting industrial self-reliance

Officials believe the initiative will strengthen India’s downstream chemical manufacturing ecosystem.

Growing Momentum in Coal Gasification Projects

The scheme is already gaining traction, with multiple projects approved in earlier phases. According to the Ministry of Coal, seven projects are currently under implementation from the first round itself.

To further boost participation, Requests for Proposals (RFPs) were invited under Round II for both Category II and Category III projects.

Advancing Cleaner and Efficient Coal Utilisation

The government’s coal gasification initiative is aimed at transforming coal into cleaner and higher-value industrial products. It supports:

  • Cleaner utilisation of coal resources
  • Reduced import dependence
  • Sustainable industrial development
  • Expansion of India’s chemical manufacturing base

The latest LoA reflects the government’s commitment to modernising India’s coal sector through advanced technologies.

The approval of the ₹793 crore Gadchiroli acetic acid project marks another step forward in India’s push for coal gasification-led industrial transformation. It aligns with national priorities of self-reliance, energy efficiency, and value-added utilisation of domestic resources.

About the Ministry of Coal

Ministry of Coal is responsible for policy formulation, regulation, and development of India’s coal sector. It plays a key role in promoting sustainable coal utilisation, boosting domestic production, and driving initiatives like coal gasification to support India’s long-term energy and industrial goals.

Read also: Ministry of Coal to Launch 15th Round of Commercial Coal Mine Auctions in Mumbai to Boost Energy Security


Indian Masterminds Stories
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Central Secretariat Service CSS
Centre Appoints IAS Nidhi Choudhari as NGMA Director, Akshay Tripathi as PS to Jual Oram | Know Them
BHAVYA-Scheme
What is BHAVYA Scheme? 87 Proposals Received From States and UTs in First Round of Phase-I
Backdoor Privatisation
SBI Q1 FY27 Results: Net Profit  Rises 14% to ₹24,113 Crore, Gross Advances Near ₹50 Lakh Crore 
Squadron Leader Bhawana Kanth
Who Is Bhawana Kanth? Meet the First Woman ‘Top Gun’ Pilot of the Indian Air Force
India-Israel Defence Pact
India Denies Defence Pact Talks With Israel Amid Growing Regional Security Debate
India China Arunachal Pradesh Land Dispute
What Are the 27 Places India Named in Arunachal Pradesh to Counter China's 'South Tibet' Narrative
OIL INDIA
Oil India Q1 FY27 Results: Net Profit Jumps 253% to ₹2,870 Crore, Revenue Rises 59% 
Research-to-Technology  Congress 2026
West Bengal Plans Research-to-Technology Push Ahead of State Science & Technology Congress 2026
ADVERTISEMENT
ADVERTISEMENT
Videos
Sumit Ramteke tn
IPS Sumit Ramteke on the Cases That Changed His Career and Shook Organized Crime | Video Interview
How NAFED is Strengthening Farmers, Markets and Food Security
How NAFED is Strengthening Farmers, Markets and Food Security
Piyusha Jagtap
How IFS Piyusha Jagtap Is Changing Conservation Through Stories, Communities and Compassion | Video Interview
ADVERTISEMENT
UPSC Stories
How Family Sacrifices Helped Pradip Bhandare Achieve His IFS Dream
How Family Sacrifices Helped Pradip Bhandare Achieve His IFS Dream
After seven Civil Services Mains, three Indian Forest Service Mains, five UPSC interviews and years of...
IAS Subhankar Bala
How IAS Subhankar Bala Cracked UPSC Without Coaching: The Story of AIR 79 and His Five Practical Preparation Tips
IAS Subhankar Bala secured AIR 79 in UPSC CSE through self-study after failing his first mains. He shares...
sandeep sahu
Why Sandeep Kumar Sahu Believed in Plan B Before Chasing Plan A
Working full-time for nine years, supporting his family and preparing through self-study, Sandeep Kumar...
CSR NEWS
CMPDI CSR
CMPDI Partners with Frontline Global Services to Train 60 Jharkhand Youth Under CSR Initiative
 CMPDI will invest ₹73.62 lakh to provide residential Phlebotomy Technician training, helping unemployed...
GRID-INDIA ALIMCO
GRID-INDIA Signs MoU with ALIMCO to Provide Assistive Devices to Persons with Disabilities
The CSR partnership aims to promote accessibility, independence and social inclusion by providing assistive...
Project Poshit
WCL Signs MoU with Zilla Parishad Gadchiroli to Launch Project Poshit for Maternal Nutrition 
Western Coalfields Limited has partnered with Zilla Parishad, Gadchiroli, to implement an Anganwadi-based...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Central Secretariat Service CSS
Centre Appoints IAS Nidhi Choudhari as NGMA Director, Akshay Tripathi as PS to Jual Oram | Know Them
BHAVYA-Scheme
What is BHAVYA Scheme? 87 Proposals Received From States and UTs in First Round of Phase-I
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Sumit Ramteke tn
How NAFED is Strengthening Farmers, Markets and Food Security
Piyusha Jagtap
ADVERTISEMENT
ADVERTISEMENT