Adani, NTPC among bidders for ₹37,500cr coal gasification plan
What's the story
The Indian government's ₹37,500 crore coal gasification scheme has attracted interest from major players like Adani Enterprises and NTPC. The Ministry of Coal confirmed on Tuesday that Adani has submitted three proposals for urea projects under this initiative. Talcher Fertilizers is also in the fray with an application for urea production.
Project proposals
Other bidders include Gallantt Ispat and Shyam Sel & Power
Apart from Adani and Talcher Fertilisers, Gallantt Ispat has applied for a project to produce direct reduced iron (DRI) and syngas.
State-run NTPC has also shown interest by submitting an application for synthetic natural gas production.
Shyam Sel & Power has proposed a project for syngas production under the scheme.
Process overview
What is coal gasification?
Coal gasification is a process that converts coal into syngas, a mixture of gasses like hydrogen and carbon monoxide.
The resulting syngas can be used to produce various products such as urea, methanol, hydrogen, and synthetic natural gas.
This strategic move by the Indian government aims to reduce dependence on imported energy and chemical products.
Capacity goals
Government aims to achieve 75M tons of coal gasification capacity
The government aims to achieve 75 million tons of coal gasification capacity under this scheme, as part of a larger goal of 100 million tons by 2030.
The initiative is expected to catalyze investments worth ₹2.5-3 lakh crore, according to the ministry.
It also provides financial incentives up to 20% of the eligible cost for coal and lignite gasification projects.
Scheme development
New projects will require extensive preparatory work
The current scheme builds on an ₹8,500 crore financial incentive scheme approved in January 2024. Eight projects are already underway under that program.
The Ministry of Coal said these new projects will require extensive preparatory work such as pre-feasibility studies, technology assessments, environmental considerations, and detailed financial planning before proposals can be submitted.