Scheme for Promotion of Surface Coal/Lignite Gasification Projects: ₹37,500 Crore Outlay

Key facts

• The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects with a total financial outlay of ₹37,500 crore.
• The scheme aims to gasify approximately 75 million tonnes of coal to support the national target of gasifying 100 million tonnes of coal by 2030.
• Financial incentives of up to 20% of plant and machinery cost will be provided, capped at ₹5,000 crore for a single project, ₹9,000 crore for a single product (excluding Synthetic Natural Gas and Urea), and ₹12,000 crore for a single entity group.
• The programme is expected to mobilise investments between ₹2.5 lakh crore and ₹3 lakh crore and create around 50,000 direct and indirect jobs across 25 projects in coal-bearing regions.
• The initiative aims to reduce India's import dependence on liquefied natural gas (LNG), urea, ammonia, methanol, coking coal, and ammonium nitrate.