Bhopal, May 14: Chief Minister Mohan Yadav expressed gratitude to Prime Minister Narendra Modi for the approval of a financial incentive scheme for coal and lignite gasification projects, amounting to ₹37,500 crores.
CM Yadav stated that under Prime Minister Modi’s leadership, the Union Cabinet has sanctioned this scheme, which is expected to enhance energy capacity and create approximately 50,000 jobs through 25 projects. Additionally, it aims to develop new long-term investment opportunities in coal gasification.
The Union Cabinet approved the incentive scheme during a meeting on Wednesday. This initiative is a significant step towards accelerating India’s coal and lignite gasification program, advancing the national target of gasifying 100 million tons of coal by 2030, strengthening energy security, and reducing import dependence on key products such as liquefied natural gas (over 50% imported), urea (20% imported), ammonia (100% imported), and methanol (80-90% imported).
In a notable reform, the central government has extended the linkage auction framework for the non-regulated sector (NRS) by 30 years for the production process of converting coal into synthetic gas. This decision is expected to facilitate investment in coal gasification projects.
India possesses approximately 401 billion tons of coal reserves and 47 billion tons of lignite. Coal contributes to over 55% of the country’s energy mix. The gasification process transforms coal and lignite into synthetic gas, serving as a versatile raw material for domestic fuel and chemical production.
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