India Boosts Coal Gasification with Significant Fiscal Incentives

The Indian government has awarded fiscal incentives totaling Rs 4,150 crore to four companies, including the BCGCL joint venture, for developing coal gasification projects aimed at producing ammonium nitrate, synthetic natural gas, and ethanol. This initiative is part of India's Rs 8,500 crore Coal Gasification Incentive Scheme.

In a strategic move, the Indian government on Thursday granted fiscal incentives amounting to Rs 4,150 crore to four companies to bolster coal gasification projects. Among the recipients is BCGCL, a joint venture between CIL and BHEL, symbolizing a push towards cleaner energy solutions.

These Letters of Award (LoAs) signal a significant advancement in India's coal gasification landscape. The Ministry of Coal underscored this milestone in a statement, detailing the awards offered under the Rs 8,500 crore Coal Gasification Incentive Scheme's Categories I and III.

Major projects include BCGCL's Lakhanpur endeavor in Odisha, targeting ammonium nitrate production, and CIL-GAIL's joint effort in West Bengal to create Synthetic Natural Gas. New Era Cleantech is recognized for its coal-to-ethanol demonstration project in Maharashtra utilizing CCUS technology.

(With inputs from agencies.)