Coal Ministry Issues LoA For Gasification Project Under Incentive Scheme

The project involves an investment of Rs 793 crore and will have an installed production capacity of 75,900 tonnes per annum of acetic acid. The scheme aims to promote coal and lignite gasification by supporting demonstration and small-scale product-based projects. Under Category III, financial assistance of up to Rs 100 crore per project or 15 per cent of capital expenditure, whichever is lower, is provided. The ministry said the initiative is part of efforts to encourage adoption of gasification technologies and enhance value-added utilisation of domestic coal resources. Seven projects are already under implementation under the first round of the scheme, while proposals for Round II were invited under multiple categories to attract further investments. The project is expected to contribute to domestic production of downstream chemicals, reduce import dependence, and support industrial development through alternative uses of coal. (KNN Bureau)