Union Coal Minister Pralhad Joshi on Friday said the government has allowed a concession of 50% in revenue share for coal gasification in order to achieve self-sufficiency in energy.
Coal gasification is considered a cleaner option compared to burning coal. Gasification facilitates the utilisation of the chemical properties of coal.
Addressing an investor’s meeting on ‘Coal Gasification – Way Forward’ organised by Coal India Limited and industry body FICCI, Joshi pitched for options like manufacturing Hydrogen from coal to help India become energy independent.
In order to support coal gasification and availability of coal for the sector at a concessional rate, the Ministry of Coal has introduced a policy for concessions of 50% in revenue share for commercial auction of coal blocks.
If the successful bidder consumes the coal produced either in its own plant(s) or plant of its holding, subsidiary, affiliate, associate for coal gasification or liquefaction or sells the coal for coal gasification or liquefaction on a yearly basis, subject to conditions that at least 10% of scheduled coal production as per approved mining plan for that year shall be consumed or sold for gasification or liquefaction, then the bidder can avail of concessions, according to a statement released by the Ministry of Coal.
Syn-Gas produced from coal can be used to produce Gaseous Fuels such as Hydrogen (Blue coupled with CCUS), Substitute Natural Gas (SNG or Methane), Di-Methyl Ether (DME), Liquid Fuels such as Methanol, Ethanol, Synthetic diesel and Chemicals like Methanol derivatives, Olefins, Propylene, Mono-Ethylene Glycol (MEG), nitrogenous fertilisers including Ammonia, DRI, Industrial Chemicals along with Power Generation.
