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.
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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.
