Ministry of Coal to draw scheme for coal gasification projects with an outlay of Rs 60 billion

The Ministry of Coal is considering a comprehensive scheme to promote coal/lignite gasification projects for both public sector undertakings (PSUs) and the private sector with an outlay of Rs 60 billion. Notably, the ministry has set a target to achieve coal gasification of 100 million tonnes coal by 2029-30 to reduce India’s reliance on imports of natural gas, methanol, ammonia and other essential products. The scheme will provide budgetary support to eligible companies, both PSUs and private entities, enabling them to undertake coal gasification projects. Further, the ministry is also considering an incentive to reimburse the goods and services tax compensation cess on coal utilised in gasification projects for a period of 10 years.