NEW DELHI: The Union Cabinet on Wednesday approved a scheme to promote surface coal and lignite gasification projects with an outlay of Rs 37,500 crore to strengthen energy security and cut dependence on imports of key products such as LNG, urea, ammonia and methanol.
The government also extended coal linkage tenure up to 30 years in the non-regulated sector auction framework for investment in coal gasification projects.
The scheme targets gasification of around 75 million tonnes of coal.
"Four projects are already under development, while this scheme will bring in 25 more such projects," Union minister Ashwini Vaishnaw said while addressing the media.
Gasification converts coal into synthetic gas and downstream products such as ammonia, urea, methanol, and other petrochemicals.
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Financial support to developers will be provided at a maximum of 20% of the cost of plant and machinery through a competitive bidding process, where incentives will be disbursed in four equal instalments linked to project milestones.
The incentive for a project will be capped at Rs 5,000 crore and for any single product, except synthetic natural gas and urea, will be capped at Rs 9,000 crore. Incentive for a single entity group will be capped at Rs 12,000 crore across all projects.
India holds one of the world's largest coal reserves of 401 billion tonnes and lignite reserves of 47 billion tonnes. Coal accounts for over 55% of the country's energy mix.
India's import bill for key substitutable products such as LNG, urea, ammonium nitrate, ammonia, coking coal, methanol, and others was around ?2.77 lakh crore in FY25, a vulnerability further exposed by the ongoing situation in West Asia, the government said.
The expected investment in the scheme is around Rs 3 lakh crore. It is also expected to generate Rs 6,300 crore revenue annually from mining.
Railway projects
The Cabinet Committee on Economic Affairs approved the Sarkhej-Dholera semi-high speed rail corridor in Gujarat at Rs 20,667 crore. This will be Indian Railways' first semi-high speed corridor and aims to be completed by 2030-31.
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It will provide faster connectivity between Ahmedabad, Dholera SIR, upcoming Dholera Airport and Lothal National Maritime Heritage Complex.
The design speed of the corridor is estimated to be 220 kilometres per hour (kmph), while operating speed is projected at 200 kmph.
The Cabinet also approved the upgradation of the Nagpur International Airport through a public-private partnership.
The lease period of the Airports Authority of India's land allotted to MIHAN India has ben extended beyond August 6, 2039. This will enable MIL to license the airport to GMR Nagpur International Airport , an official release said.
The government also extended coal linkage tenure up to 30 years in the non-regulated sector auction framework for investment in coal gasification projects.
The scheme targets gasification of around 75 million tonnes of coal.
"Four projects are already under development, while this scheme will bring in 25 more such projects," Union minister Ashwini Vaishnaw said while addressing the media.
Gasification converts coal into synthetic gas and downstream products such as ammonia, urea, methanol, and other petrochemicals.
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Financial support to developers will be provided at a maximum of 20% of the cost of plant and machinery through a competitive bidding process, where incentives will be disbursed in four equal instalments linked to project milestones.
The incentive for a project will be capped at Rs 5,000 crore and for any single product, except synthetic natural gas and urea, will be capped at Rs 9,000 crore. Incentive for a single entity group will be capped at Rs 12,000 crore across all projects.
India holds one of the world's largest coal reserves of 401 billion tonnes and lignite reserves of 47 billion tonnes. Coal accounts for over 55% of the country's energy mix.
India's import bill for key substitutable products such as LNG, urea, ammonium nitrate, ammonia, coking coal, methanol, and others was around ?2.77 lakh crore in FY25, a vulnerability further exposed by the ongoing situation in West Asia, the government said.
The expected investment in the scheme is around Rs 3 lakh crore. It is also expected to generate Rs 6,300 crore revenue annually from mining.
Railway projects
The Cabinet Committee on Economic Affairs approved the Sarkhej-Dholera semi-high speed rail corridor in Gujarat at Rs 20,667 crore. This will be Indian Railways' first semi-high speed corridor and aims to be completed by 2030-31.
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It will provide faster connectivity between Ahmedabad, Dholera SIR, upcoming Dholera Airport and Lothal National Maritime Heritage Complex.
The design speed of the corridor is estimated to be 220 kilometres per hour (kmph), while operating speed is projected at 200 kmph.
The Cabinet also approved the upgradation of the Nagpur International Airport through a public-private partnership.
The lease period of the Airports Authority of India's land allotted to MIHAN India has ben extended beyond August 6, 2039. This will enable MIL to license the airport to GMR Nagpur International Airport , an official release said.
