The Union Cabinet has given the nod to a Rs 8,500 crore incentive scheme for coal gasification initiatives, with the goal of decreasing India's reliance on imported natural gas, methanol, ammonia, and other essential products. The government's ambitious plan is to gasify 100 million tonnes of coal by 2030, utilizing the gasification process to generate syngas for power production and methanol manufacturing.

According to sources, the Union Cabinet granted approval to the Rs 8,500 crore incentive plan for coal gasification projects on Wednesday. The introduction of gasification technology in India is anticipated to curb the need for importing natural gas, methanol, ammonia, and other vital commodities.

The cabinet's green light for the Rs 8,500 crore incentive scheme marks a significant step forward for coal gasification projects, as outlined by reliable sources.

The government has set a target to gasify 100 million tonnes (MT) of coal by the year 2030.

In the gasification process, coal undergoes partial oxidation using air, oxygen, steam, or carbon dioxide under controlled conditions, resulting in the creation of a liquid fuel called syngas. Syngas, or synthesis gas, can be harnessed for electricity generation and the production of methanol.

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