Coal Ministry invites proposals from PSUs, private sector for Lignite and Coal Gasification promotion

The Coal Ministry has launched a Request for Proposal (RFP) aimed at promoting Lignite & Coal Gasification as part of efforts to advance cleaner energy initiatives. The RFP invites interest from Public Sector Undertakings (PSUs), private sector investors, and R&D agencies. Stakeholders have until September 12th to submit proposals, which will then undergo feasibility evaluation by the government. Under the scheme, PSUs are eligible for Viability Gap Funding (VGF) of ₹1,350 crores per project, while private sector investors can avail VGF of up to ₹1,000 crores and ₹100 crores under different categories. \r

Additionally, commercial and captive mine owners utilizing their coal for gasification can receive a 50% incentive on revenue share. To ensure a steady coal supply, the Ministry has established a separate long-term linkage window. With India producing over 1 Billion Tonnes (BT) of Coal/Lignite in FY 2023-24 and targeting 1,080 MT for the current FY, the country aims to reduce coal imports further by enhancing coal gasification capabilities in anticipation of future surplus domestic coal.