Cabinet approves Rs 8,500 crore incentive scheme for coal gasification projects

The Union Cabinet on Wednesday approved a Rs 8,500 crore incentive scheme for coal gasification projects, sources said.

The adoption of gasification technology in India is expected to reduce the country's reliance on imports of natural gas, methanol, ammonia and other essential products.

The cabinet has given its go-ahead to Rs 8,500 crore incentive scheme for coal gasification projects, the sources said.

The government is targeting to gasify 100 million tonnes (MT) of coal by 2030.

In gasification process, coal is partially oxidised by air, oxygen, steam, or carbon dioxide under controlled conditions to produce a liquid fuel known as syngas.

Syngas or synthesis gas can be used for power generation and to make methanol as well.