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
nitish
Bihar to Introduce Incentive Policy 2026, Plans to Reopen Closed Sugar Mills and Set Up 25 New Units
yadav
MP CM Mohan Yadav Inaugurates ₹48.71 Crore Nanakheda Stadium Upgrade Ahead of 2030 Commonwealth Games
Ruchi Singh
UPSC CSE 2025: Inspector’s Daughter Ruchi Singh Secures AIR 171, Father Set to Salute Her as IPS Officer
omc
OMC Launches 2 Day Cervical Cancer Vaccination Drive for Women Employees Across Head Office and Mining Units
GAIL PSU
GAIL India Appoints Rohit Mathur as Government Nominee Director to Strengthen Energy Governance
NTPC Green
NTPC Green Energy Commissions 91.6 MW Second Phase of Ayana Kadapa Solar Project, Total Capacity Hits 9,292 MW
grse
GRSE Wins Multiple Awards at 15th ICC PSE Conclave 2026, Cmde P.R. Hari Honoured as ‘CMD of the Year’
Mahanagar Gas Limited MGL
Mahanagar Gas Limited Appoints Deepak Gupta as Chairman to Boost CNG, PNG and Clean Energy Initiatives
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2026-03-02 at 10.22
Beno Zephine: India’s First 100% Visually Challenged IFS Officer Who Rewrote the Rules of Diplomacy | EXCLUSIVE
Prajesh Kanta Jena
How IFS Prajesh Kanta Jena Empowered Women & Youth at Palamau Tiger Reserve
WhatsApp Image 2026-02-23 at 12.13
Exclusive | From Ridge to River: Prajesh Kanta Jena’s Community-Led Conservation Drive at Palamau
ADVERTISEMENT
UPSC Stories
WEB THUMBNAIL TEMPLATE -3
3 Attempts, 1 Dream: How Indore’s Ananya Sharma Secured AIR 13 in UPSC CSE 2025 After Two Prelims Failures | Exclusive
Ananya Sharma from Indore secured AIR 13 in UPSC CSE 2025 in her third attempt after failing prelims...
WhatsApp Image 2026-03-09 at 2.31
UPSC 2025 Gujarat Topper: Nisar Dishant Amrutlal’s Four-Attempt Journey to AIR 19 | Exclusive
Born in Mumbai with roots in Kutch, Nisar Dishant Amrutlal secured AIR 19 in UPSC CSE 2025 after four...
UPSC CSE 2025: Patna’s Ujjwal Priyank Bags AIR 10 After Missing Final List Earlier | EXCLUSIVE 
UPSC CSE 2025: Patna’s Ujjwal Priyank Bags AIR 10 After Missing Final List Earlier | EXCLUSIVE 
Patna’s Ujjwal Priyank secured AIR 10 in UPSC CSE 2025 after narrowly missing the final list earlier....
Social Media
One-Horned Rhino Calf
Watch: First One-Horned Rhino Calf of 2026 Takes Birth at Jaldapara National Park, IFS Officer Shares Rare Footage
A newborn one-horned rhinoceros calf was spotted at Jaldapara National Park on January 1, 2026. IFS officer...
venomous banded krait
Rare Night Encounter: IFS Officer Spots Highly Venomous Banded Krait During Forest Patrol, Internet Amazed
An IFS officer’s night patrol video of a highly venomous banded krait has gone viral, highlighting India’s...
elephant rescue Karnataka
Heroic Karnataka Elephant Rescue: How a 28-Hour “Impossible Mission” Became a Triumph of Wildlife Care, IFS Parveen Kaswan Shares Video
A trapped elephant was rescued after 28 hours in Karnataka through a massive, expertly coordinated Forest...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
nitish
Bihar to Introduce Incentive Policy 2026, Plans to Reopen Closed Sugar Mills and Set Up 25 New Units
yadav
MP CM Mohan Yadav Inaugurates ₹48.71 Crore Nanakheda Stadium Upgrade Ahead of 2030 Commonwealth Games
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2026-03-02 at 10.22
Prajesh Kanta Jena
WhatsApp Image 2026-02-23 at 12.13
ADVERTISEMENT
ADVERTISEMENT