Govt gives LoAs to 4 entities to avail incentives for coal gasification projects

New Delhi: The government on Thursday gave letters of award to four entities, including BCGCL- a joint venture of CIL-BHEL - for availing fiscal incentives totalling Rs 4,150 crore for setting up coal gasification projects.

Letters of Award (LoAs) have been given to CIL-BHEL , a consortium of CIL-GAIL , Coal India Ltd and New Era Cleantech Solution Pvt Ltd. "Ministry of Coal has reached a significant milestone in India's Coal Gasification Initiative with the issuance of LoAs to the selected applicants under Categories I and III of the Rs 8,500 crore Coal Gasification Incentive Scheme," the coal ministry said in a statement.

BCGCL has been awarded Rs 1,350 crore of financial incentive under the scheme for its coal gasification project in Lakhanpur, Odisha. With a total investment of Rs 11,768 crore, the project aims to produce 0.66 million tonne per annum of ammonium nitrate.

The CIL-GAIL joint venture project in Sonepur Bazari, West Bengal, has been awarded Rs 1,350 crore. This project, costing Rs 13,052.81 crore, will focus on converting coal into Synthetic Natural Gas (SNG) with a 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 Rs 1,350 crore.

The project, with a total cost of Rs 12,214.86 crore, aims for a production capacity of 1.83 MMSCMD of synthetic natural gas. New Era Cleantech Solution's coal-to-ethanol demonstration project in Chandrapur, Maharashtra, has been awarded Rs 100 crore of financial incentive under the scheme. "With a total investment of Rs 667 crore, the project will utilise carbon capture, utilization, and Storage (CCUS) technology, capturing approximately 20,144 MT of CO2 annually while producing 18 KTPA of ethanol," the statement said.