Scheme for Promotion of Surface Coal / Lignite Gasification Projects
Scheme for Promotion of Surface Coal / Lignite Gasification Projects
Why in News:
Coal ministry organizes roadshow on surface coal, lignite gasification promotion scheme.
Salient Features of the Scheme:
The scheme aims to incentivize new surface coal/lignite gasification projects to produce syngas and downstream derivatives.
This framework directly supports the overarching national target of gasifying 100 MT of coal by 2030.
Incentive Structure:
Financial assistance is capped at 20% of the cost of Plant and Machinery.
Project Cap: Maximum ₹5,000 crore per project.
Product Cap: Maximum ₹9,000 crore for any single product (except Synthetic Natural Gas and Urea).
Entity Cap: Maximum ₹12,000 crore for a single group across all projects.
Prelims Ready Notes- Coal Gasification:
Coal gasification is a clean coal technology that thermo-chemically converts raw coal or lignite into a versatile gaseous mixture called synthesis gas or syngas.
A synthetic gas composed mainly of carbon monoxide (CO), hydrogen (H₂), carbon dioxide (CO₂), methane (CH₄), and water vapour (H₂O).
Syngas serves as a foundational feedstock to- chemical fertilizers (urea and ammonia), petrochemicals, methanol, synthetic natural gas, hydrogen, and direct reduced iron (DRI) for steel production.