Ans21.) In may 2026, cabinet approved scheme for promotion of surface coal/ lignite gasification project with a budget of ₹37500 crore. The target is to gasify 100 million tonnes of coal by 2030. It will help in reducing import of lng, urea, methane etc.
The main features of the scheme are
- Govt will provide subsidy to incentivise production of syngas and its downstream product.
- Financial incentives will be maximum of 20% of cost of plant and machinery.
- Selection of firms will be through electronic bidding
-, The incentive will be given in 4,equal monthly installments linked to project milestones
-, The subsidy will be over and above other govt schemes.
Benefits
- It is expected to mobilise investment worth ₹2.5-3 lakh crore
- It will reduce price volatility in energy sector
- It will create 75000 new jobs
-, it is expected to generate ₹6300 crore and gst for the govt
- It will keep Indian export of steel and cement out of CBAM restrictions.
Therefore coal gasification can help in providing energy security with high economic returns.
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