On Thursday, the Indian government awarded Letters of Award (LoAs) to four entities for availing fiscal incentives totaling ₹4,150 crore. This substantial financial support aims to set up coal gasification projects, marking a significant move towards enhancing the country’s energy infrastructure. Among the recipients of these awards is BCGCL, a joint venture between Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL).
The government has distributed the Letters of Award to several key players in the coal and energy sector. These include a consortium of CIL-GAIL, Coal India Ltd., and New Era Cleantech Solution Pvt Ltd. These entities are set to benefit from the incentives provided under the ₹8,500 crore Coal Gasification Incentive Scheme. The Ministry of Coal has described this development as a significant milestone in India’s Coal Gasification Initiative. By issuing these LoAs, the ministry supports selected applicants under categories I and III of the incentive schemes.
BCGCL’s coal gasification project in Lakhanpur, Odisha, has been awarded ₹1,350 crore in financial incentives. With a total investment of ₹11,768 crore, the project aims to produce 0.66 million tonnes per annum of ammonium nitrate. The CIL-GAIL joint venture project in Sonepur Bazari, West Bengal, has also been granted ₹1,350 crore in financial incentives. This project, involving a total cost of ₹13,052.81 crore, will focus on converting coal into Synthetic Natural Gas (SNG) with an expected production capacity of 1.83 million metric standard cubic meters per day (MMSCMD).
Coal India Ltd’s coal-to-SNG project in Maharashtra has been awarded ₹1,350 crore in financial incentives. The project has a total investment of ₹12,214.86 crore and aims to produce 1.83 MMSCMD of synthetic natural gas. Additionally, New Era Cleantech Solution’s coal-to-ethanol demonstration project in Chandrapur, Maharashtra, received ₹100 crore in financial incentives. The project, with a total investment of ₹667 crore, will utilize Carbon Capture, Utilization, and Storage (CCUS) technology, capturing approximately 20,144 MT of CO2 annually while producing 18 KTPA of ethanol.
This initiative reflects the government’s commitment to promoting cleaner and more sustainable energy sources. By investing in coal gasification, these projects are expected to significantly reduce emissions and enhance the efficiency of coal utilization.
The financial incentives provided are crucial in supporting the development and implementation of these advanced technologies. The projects, by leveraging carbon capture and storage technologies, aim to mitigate the environmental impact of coal usage. This aligns with global efforts to transition towards cleaner energy and reduce carbon footprints. The focus on converting coal to synthetic natural gas and ethanol also opens new avenues for the utilization of coal resources in an environmentally friendly manner.
Overall, the government’s proactive approach in providing fiscal incentives for coal gasification projects marks a significant step towards energy sustainability and economic growth. The successful implementation of these projects will not only enhance India’s energy security but also contribute to its environmental goals.
