JSPL & 2 Firms Get Rs 1,983 Cr for Coal Gasification

New Delhi, Feb 12 (PTI) The government has allocated a total of Rs 1,983.06 crore to Jindal Steel and Power Ltd (JSPL) and two other entities under a financial incentive scheme to promote coal and lignite gasification.

JSPL has secured a financial assistance of Rs 569.05 crore for its 2 million tonne per annum (MTPA) coal gasification project in Angul, Odisha, Ministry of Coal said in a statement on Wednesday.

The project being set up at an overall cost of Rs 3,793 crore will convert coal into Direct Reduced Iron (DRI) through coal gasification while also setting up a carbon capture and utilization plant designed to capture 30 TPD (tonne per day) of CO2 for conversion into valuable products, it said.

A financial incentive of Rs 1,000 crore has been granted for New Era Cleantech's coal gasification project in Bhadravati, Chandrapur, Maharashtra.

With total project cost of Rs 6,976 crore, it aims to produce 0.33 MTPA of ammonium nitrate and 0.1 MTPA of hydrogen. The project will implement Carbon Capture, Utilization, and Storage (CCUS) technology, where captured CO2 will be utilized for methanol production.

Greta Energy Ltd has been awarded Rs 414.01 crore of financial incentive for its coal gasification project at MIDC Bhadravati, Maharashtra. With a total investment of Rs 2,763 crore, the project aims to produce 0.5 MTPA of DRI.

Letters of Award have been given to the three selected applicants under Categories II of the scheme, the ministry said.

The Request for Proposals for Category-II was issued on May 15, 2024, and technical bids were opened on January 10, 2025.

The government on January 24, 2024, launched a Financial Incentive Scheme with a financial outlay of Rs 8,500 crore to provide viability gap funding (VGF) to promote coal/lignite gasification projects for PSUs and the private sector in three categories.

Category I is for PSUs only with a provision of Rs 4,050 crore. Category II, with an outlay of Rs 3,850 crore, is available to both the private sector and PSUs with a maximum grant of Rs 1,000 crore or 15 per cent of project cost, whichever is lower.

Category III, with an outlay of Rs 600 crore is for demonstration or small-scale projects with a maximum grant per project of Rs 100 crore or 15 per cent of project cost, whichever is lower.