New Delhi: The Ministry of Coal has taken a significant step in advancing India’s coal gasification mission by issuing a Letter of Award (LoA) under Category III of Round II of its ₹8,500 crore Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects.
The LoA was awarded by Sanoj Kumar Jha, Additional Secretary in the Ministry, to Kartikay Vayunandana Private Limited for setting up a coal-to-acetic acid plant in Gadchiroli, Maharashtra.
₹793 Crore Project to Boost Value-Added Coal Utilisation
The upcoming project involves an investment of ₹793 crore and will establish a small-scale coal gasification plant with an installed capacity of 75,900 tonnes per annum (TPA) of acetic acid.
This initiative marks a major move towards converting domestic coal into high-value downstream chemicals, thereby enhancing resource efficiency and industrial output.
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Scheme Gains Momentum Across Rounds
The Financial Incentive Scheme for Coal/Lignite Gasification Projects has been witnessing strong traction. So far:
- Seven projects have already been taken up under the first round
- Round II has invited Requests for Proposals (RFPs) under Category II and Category III
- The scheme aims to encourage broader industry participation in gasification technologies
Focus on Innovation Through Category III
Category III of the scheme is specifically designed to promote:
- Demonstration projects
- Small-scale, product-based gasification plants
Under this category, financial assistance is provided up to:
- ₹100 crore per project, or
- 15% of the capital expenditure (Capex), whichever is lower
This targeted support is intended to foster innovation and accelerate the adoption of cleaner coal technologies.
Strategic Impact: Reducing Imports, Strengthening Industry
The Gadchiroli project is expected to:
- Boost domestic production of chemicals like acetic acid
- Reduce India’s dependence on imports
- Support the development of a self-reliant industrial ecosystem
It also aligns with the broader vision of Atmanirbhar Bharat, promoting indigenous manufacturing and resource utilisation.
Towards Cleaner and Efficient Coal Use
Coal gasification is increasingly being seen as a cleaner alternative to traditional coal usage. By converting coal into gas and downstream products, it reduces emissions and enhances efficiency.
The Ministry’s continued push in this sector reflects a strategic balance between energy security and environmental sustainability.
