Govt to make coal available for coal gasification projects at subsidised rates: Coal Secretary

Coal will be made available for coal gasification projects at subsidised rates, almost the same as it is made available to the power sector, said Coal Secretary Amrit Lal Meena at an industry interaction meeting organised by the Ministry of Coal in Hyderabad on Friday on ways to promote coal, and lignite gasification projects across the country. “If you don’t own a coal mine, Coal India and SCCL have assured that they will provide a long-term coal linkage to you for your entire gasification requirement… 10 years, 15 years, 20 years. And this coal will be available almost at the same rate at which it is being made available to the power sector, which means subsidised coal. Otherwise, for other sectors of the economy, like cement, steel, coal is made available at a premium,” said Meena. 

He added that for those potential investors who own a coal mine, the government has already provided incentives in the form of a rebate of 50 percent in revenue-sharing. Even though the government announced its intention to achieve 100 MT of coal gasification by 2030 at least three years ago, projects had not taken off on the ground for the lack of coal availability and technological challenges in gasification of high-ash coal that is widely available in India. However, with increased coal production, coal can now be made available for gasification.