Coal Gasification: Boosting Steel && Reducing Imports - India's 100 MT Plan
By Rediff Money Desk, NEWDELHI Feb 01, 2024 20:41
India aims to increase coal gasification capacity to 100 MT by 2030, reducing natural gas imports, boosting steel production, and creating jobs. Experts see it as a clean coal technology for a self-reliant India.
New Delhi, Feb 1 (PTI) Increasing coal gasification and liquefaction capacity will reduce India's reliance on imports of natural gas and other critical items, curb emissions and give a fillip to end-user sectors like steel, experts said.
Finance Minister Nirmala Sitharaman while presenting the interim budget in parliament on Thursday said: "Coal gasification and liquefaction capacity of 100 MT will be set up by 2030."
Under gasification process, coal is converted into liquid fuel called syngas used as fuel for steel production.
The move is in line with the objective of Aatmanirbhar Bharat, said Somesh Kumar, Partner & Leader- Power & Utilities, EY.
"...it will not only enable investment and employment generation but will also reduce reliance on imports of critical items like natural gas, methanol, ammonia and other essential products," Kumar said.
He stressed that coal gasification is one of the most viable and effective clean coal technologies for production of synthetic fuels, chemicals, various thermal applications and power generation.
It also helps in utilising coal for meeting stringent environment requirements.
According to Ritabrata Ghosh, Vice President, Sector Head, Corporate Sector Ratings, ICRA, 100 million tonne per annum coal gasification target by 2030 can provide a fillip to end-use sectors like steel, chemicals, petrochemicals, and fertilizers.
"Increased availability of syngas from coal can help reduce import dependence of natural gas," Ghosh explained.
Former chairman of Coal India Partha S Bhattacharyya said coal gasification enables power generation with much less CO2 emission.
In January, the government approved an outlay of Rs 8,500 crore as financial assistance for promoting coal, lignite gasification projects.
The government has also approved setting up of a coal-to-SNG (Synthetic Natural Gas) project through a joint venture between Coal India and GAIL at an investment of Rs 13,052.81 crore and coal-to-ammonium nitrate project through a joint venture between CIL and BHEL for Rs 11,782.05 crore.
Finance Minister Nirmala Sitharaman while presenting the interim budget in parliament on Thursday said: "Coal gasification and liquefaction capacity of 100 MT will be set up by 2030."
Under gasification process, coal is converted into liquid fuel called syngas used as fuel for steel production.
The move is in line with the objective of Aatmanirbhar Bharat, said Somesh Kumar, Partner & Leader- Power & Utilities, EY.
"...it will not only enable investment and employment generation but will also reduce reliance on imports of critical items like natural gas, methanol, ammonia and other essential products," Kumar said.
He stressed that coal gasification is one of the most viable and effective clean coal technologies for production of synthetic fuels, chemicals, various thermal applications and power generation.
It also helps in utilising coal for meeting stringent environment requirements.
According to Ritabrata Ghosh, Vice President, Sector Head, Corporate Sector Ratings, ICRA, 100 million tonne per annum coal gasification target by 2030 can provide a fillip to end-use sectors like steel, chemicals, petrochemicals, and fertilizers.
"Increased availability of syngas from coal can help reduce import dependence of natural gas," Ghosh explained.
Former chairman of Coal India Partha S Bhattacharyya said coal gasification enables power generation with much less CO2 emission.
In January, the government approved an outlay of Rs 8,500 crore as financial assistance for promoting coal, lignite gasification projects.
The government has also approved setting up of a coal-to-SNG (Synthetic Natural Gas) project through a joint venture between Coal India and GAIL at an investment of Rs 13,052.81 crore and coal-to-ammonium nitrate project through a joint venture between CIL and BHEL for Rs 11,782.05 crore.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Srestha Finvest
- 0.67 ( -4.29)
- 67675345
- Vodafone Idea L
- 7.34 ( -0.41)
- 39063581
- AvanceTechnologies
- 0.96 (+ 4.35)
- 22450285
- Standard Capital
- 1.11 (+ 9.90)
- 21182942
- IFL Enterprises
- 1.01 ( -3.81)
- 14393443
MORE NEWS
India-Japan Business Summit Focuses on SME...
The India-Japan Business Summit in Bengaluru highlighted cooperation between Indian and...
New Senior Citizen Policy: India Focuses on...
India's Ministry of Social Justice & Empowerment announces a new policy for senior...
Mahindra CEO: Balance Tariff, Non-Tariff...
Mahindra Group CEO Anish Shah advocates for a balance between tariffs and non-tariff...