JSPL, 2 Others Get Financial Incentive Scheme for Coal Gasification

New Delhi, Feb 4 (PTI) The government has selected three private entities, including Jindal Steel and Power Limited (JSPL), under category II of the Financial Incentive Scheme to promote coal/lignite gasification projects.

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

The Request for Proposals for category-II was issued on May 15, 2024, and technical bids were opened on January 10, 2025. This category has an outlay of Rs 3,850 crore, the ministry said in a statement.

The name of selected applicants for receiving financial incentives under category-II are Jindal Steel and Power Limited (JSPL), New Era Cleantech Solution and Greta Energy Limited.

The names of applicants selected in the category I and III of the scheme have already been announced earlier.

PSUs come under Category I with a provision of Rs 4,050 crore.

They can submit proposals for funding assistance, and three selected projects will receive a maximum grant of Rs 1,350 crore or 15 per cent of project cost, whichever is lower.

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