The Ministry of Coal has shortlisted New Era Cleantech Solution Private Limited, Jindal Steel and Power Limited (JSPL), and Greta Energy Limited under Category-II of the Financial Incentive Scheme for coal gasification. Sources indicate that New Era Cleantech Solution has secured the highest funding, receiving ₹1,000 crore, while JSPL and Greta Energy will receive ₹500 crore each.
In an official statement on Tuesday, the ministry described this initiative as a key milestone in India’s coal gasification program. The Rs 8,500 crore scheme aims to promote coal gasification, cut carbon emissions, strengthen energy security, and support sustainable development.
Encouraging Private and PSU Participation
Launched on January 24, 2024, the scheme encourages both private firms and public sector undertakings (PSUs) to invest in coal gasification projects. The Request for Proposals (RFP) for Category-II was issued on May 15, 2024, with technical bids opened on January 10, 2025. This category supports both private and public sector projects, offering financial incentives of 15% of the capital expenditure or ₹1,000 crore, whichever is lower, in two equal installments.
New Era Cleantech Secures Funding Across Two Categories
New Era Cleantech Solution is developing a 5-MTPA coal gasification plant in Chandrapur, Maharashtra. In addition to Category-II funding, the company had previously received ₹100 crore under Category-III, which supports demonstration and small-scale product-based projects. Its coal-to-ethanol initiative, also based in Chandrapur, has been shortlisted under this category. This project, worth ₹667 crore, will utilise Carbon Capture, Utilisation, and Storage (CCUS) technology, aiming to capture 20,144 metric tonnes of CO₂ annually while producing 18 KTPA of ethanol.
Expressing his views on the development, Balasaheb Darade, Managing Director of New Era Cleantech, said that the company is honoured to be selected, reinforcing its leadership in gasification and decarbonisation technologies. He emphasised that this initiative aligns with India’s clean energy goals and strengthens confidence among stakeholders.
A Push for Clean Energy and Self-Reliance
The Ministry of Coal highlighted that this initiative is a crucial part of India’s plan to achieve 100 million tonnes of coal gasification by 2030. The strong participation from industry players in the bidding process reflects growing interest in coal gasification technologies. The ministry believes that successful implementation of these projects will contribute to a cleaner, more energy-efficient coal sector, supporting India’s transition towards sustainable energy solutions.
