https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Fueling Progress, Restoring Nature: Centre Boosts Coal Gasification with ₹8,500 Cr Incentive While PSUs Green Mined-Out Lands

Centre accelerates clean coal goals with ₹8,500 crore gasification plan as PSUs lead ecological restoration across coal belts.
Indian Masterminds Stories

New Delhi – In a significant stride towards clean energy transition and ecological balance, the Ministry of Coal has intensified its twin approach of advancing coal gasification and ecological restoration of mined-out areas. Backed by a ₹8,500 crore incentive scheme and robust PSU-driven environmental reclamation efforts, the government’s strategy is shaping a greener, more energy-secure future.

₹8,500 Crore Push to Revive Coal Gasification

The Centre has greenlit a three-category incentive scheme worth ₹8,500 crore to promote coal and lignite gasification in both public and private sectors. Announced in January 2024, the scheme has already received active participation, with seven major projects approved under its ambit.

Category-wise distribution includes:

  • Category I (PSUs only): ₹4,050 crore provision with 3 projects sanctioned at ₹1,350 crore each.
  • Category II (open to PSUs and private firms): ₹3,850 crore outlay with 3 private sector projects approved, receiving ₹1,983.06 crore.
  • Category III (demonstration-scale): ₹600 crore reserved, with one private sector project gaining ₹100 crore in government support.

In parallel, Coal India Limited (CIL) has received approval to invest in two joint ventures — one with Bharat Heavy Electricals Limited (BHEL) and another with GAIL — for executing gasification projects. These joint venture companies have now been formally established.

To further accelerate uptake, the Centre introduced new reforms:

  • Creation of a dedicated “Production of Syngas” sub-sector under Non-Regulated Sector linkage auctions.
  • Guaranteed coal supply to gasification projects at regulated-sector floor prices for those commissioned within the next seven years.
  • A 50% revenue share rebate in commercial coal block auctions for projects using at least 10% of coal production in gasification.
  • Case-specific waivers for Transfer of Technology (ToT) from land-border-sharing nations, with one such waiver already granted.

Also Read: Coal India, SCCL, and NLCIL Set to Open Dozens of New Mines in Next Five Years

PSUs Spearhead Reclamation and Water Resilience Projects

Coal and lignite PSUs — Coal India Limited, NLC India Limited, and Singareni Collieries Company Limited — are simultaneously leading a large-scale reclamation campaign across mined-out zones. Their mission: to restore ecological balance, rejuvenate groundwater, and enhance community access to water resources.

For FY 2025-26, these PSUs aim to reclaim and afforest 2,800 hectares in and around mining regions. Advanced techniques such as drone-based seed broadcasting, Miyawaki plantations, and seed ball dispersal are being deployed to boost green cover.

Hydrological restoration forms the second pillar of this mission. The Ministry of Coal, in collaboration with the Ministry of Jal Shakti and state governments, is driving the reuse of treated mine water for local domestic and irrigation use. With CGWA-issued No Objection Certificates (NoCs), coal PSUs have rolled out the following initiatives:

  • Rainwater Harvesting: Widespread installation of rooftop and surface systems to enhance groundwater recharge.
  • Eco-restoration through Plantation: Dense plantation in and around mines to curb soil erosion and increase water retention.
  • Water Management Infrastructure: Check dams, garland drains, and gabion walls constructed for better runoff management and siltation control.
  • Hydrogeological Monitoring: Ongoing tracking of groundwater levels via CGWA-accredited assessments.
  • Revival of Traditional Water Bodies: Restoration of ponds and reservoirs to support communities and maintain ecological balance.

Union Minister for Coal and Mines, Shri G. Kishan Reddy, confirmed these developments in separate written replies in the Rajya Sabha.

About Coal India Limited

Coal India Limited (CIL) is a Maharatna PSU under the Ministry of Coal, Government of India. As the world’s largest coal-producing company, CIL plays a vital role in ensuring India’s energy security. Through a wide array of CSR initiatives, CIL continues to invest in sustainable community development, focusing on education, healthcare, infrastructure, and environmental sustainability—ensuring its impact extends beyond mining to nation-building.

About NLC India

NLC India Limited (NLCIL), formerly known as Neyveli Lignite Corporation, is a Navratna Central Public Sector Undertaking under the Ministry of Coal, Government of India. Established in 1956, NLCIL is headquartered in Neyveli, Tamil Nadu, and specializes in lignite mining and power generation, including thermal, solar, and wind energy.

About SCCL

The Singareni Collieries Company Limited (SCCL) is a government-owned-coal mining corporation in India. It is under the ownership of Department of Energy, Government of Telangana. The Union Government’s administration of the company is through the 49% ownership held by Ministry of Coal.

Also Read: Coal India (CIL) Commits ₹10 Crore to Empower Tribal Students Through Digital & Entrepreneurial Education in Chhattisgarh


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
IFS officer with Odisha CM Mohan Majhi
IFS Officers from 2000-2001 Batch Meet Odisha CM Mohan Majhi to Discuss Development and Diplomatic Engagements
ESIC
ESIC Launches Nationwide Campaign for Amnesty Scheme 2025, Aims to Clear 27,000 Pending Cases
Indian Railways SBI Partner
Indian Railways, SBI Partner to Provide Comprehensive Insurance Benefits to 7 Lakh Railway Employees
MTNL
MTNL Faces Fines from NSE, BSE for Delay in Appointing Woman Director and Committee Formation
NTPC
PESB Fails to Pick Successor: NTPC CMD Gurdeep Singh Gets One-Year Extension After Shareholders’ Approval
IPS Sanjay Singhal
UP Cadre IPS Sanjay Singhal, Former BSF Special DG, Takes Charge as SSB Director General | Career Highlight
Jammu and Kashmir Government
IAS Mahima Madan Appointed Additional Secretary, IT Department in Jammu & Kashmir; To Retain Dual Charges
BHEL_resized
BHEL Awards ₹1,125 Crore Contract for Structural Fabrication and Supply to Support Nationwide Projects- Know More
ADVERTISEMENT
ADVERTISEMENT
Videos
IPS Shikha Goel
Decoding Digital Dangers: Insights from IPS Shikha Goel on Cyber Crimes
IPS Mukesh Kumar Bhamoo
Managing Elections, Communal Tensions, and Public Safety – Meet IPS Mukesh Kumar Bhamoo | Video Interview
WhatsApp Image 2025-08-25 at 13.56
Operation Hunt: IPS Dr. Karanraj Vaghela’s Mission to Nab Valsad’s Most Wanted
ADVERTISEMENT
UPSC Stories
IAS Minnu P M
“Lazy, Sleepy, Yet Determined”: Minnu P M’s Honest Take on Cracking UPSC
Minnu PM, once a clerk in Kerala Police, cleared UPSC with AIR 150 after five years of struggle. Her...
IPS Ashish Tiwari
From IIT and Investment Banking to Public Service, Meet IPS Ashish Tiwari 
Ashish Tiwari, IIT graduate and former investment banker, chose public service over global finance. As...
WhatsApp Image 2025-08-12 at 7.27
First Attempt IRS, Fourth Attempt IPS: The Relentless Pursuit of Jitendra Kumar Yadav Who Cracked UPSC 3 Times
IPS Yadav is originally from Chhattisgarh. He was first selected for the IRS through UPSC and later for...
Social Media
Masahiro Hara
From Go Board to Global Use, How QR Codes Changed the World: IRAS Officer Ananth Rupanagudi Spotlights Masahiro Hara’s Vision
IRAS officer Ananth Rupanagudi shared a video on Masahiro Hara, the inventor of QR codes, highlighting...
IFS Susanta Nanda Video
A Mother’s Duty: Tigress Watches Over Cubs Splashing in Waterhole — Heartwarming Video Shared By Retd. IFS Officer Susanta Nanda
A tender wildlife video shared by Retd. IFS officer Susanta Nanda shows a tigress keeping watch over...
Mohanmala
Kaziranga Mourns: Beloved Elephant Mohanmala Passes Away After Five Decades of Service
Kaziranga National Park mourns the loss of Mohanmala, a beloved elephant who served over 50 years as...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
IFS officer with Odisha CM Mohan Majhi
IFS Officers from 2000-2001 Batch Meet Odisha CM Mohan Majhi to Discuss Development and Diplomatic Engagements
ESIC
ESIC Launches Nationwide Campaign for Amnesty Scheme 2025, Aims to Clear 27,000 Pending Cases
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IPS Shikha Goel
IPS Mukesh Kumar Bhamoo
WhatsApp Image 2025-08-25 at 13.56
ADVERTISEMENT
ADVERTISEMENT