National Coal Gasification Mission 2021

The scheme supports India’s target of gasifying 100 MT of coal by 2030 under the National Coal Gasification Mission, 2021. It is for domestic coal gasification, energy security, and import reduction.

Coal Gasification Scheme:

Dimension	Key Details
Coal Gasification	Coal gasification is a thermochemical process that converts coal into synthesis gas or syngas.
Syngas	Syngas is a mixture of carbon monoxide and hydrogen used to produce urea, methanol, synthetic natural gas, and ammonia.
Mission Linkage	The scheme supports the National Coal Gasification Mission, 2021 target of gasifying 100 MT of coal by 2030.
Coal and Lignite Reserves	India has coal reserves of 401 billion tonnes and lignite reserves of 47 billion tonnes.
Scheme Target	The scheme targets gasification of approximately 75 MT of coal and lignite by incentivising domestic industries.
Financial Outlay	The scheme has a financial outlay of ₹37,500 crore.
Financial Incentive	The scheme provides financial incentive up to 20% of the cost of plant and machinery, disbursed in 4 instalments linked to project milestones.
Funding Caps	Funding caps comprise ₹5,000 crore for a single project, ₹9,000 crore for single product-centred projects excluding SNG and urea, and ₹12,000 crore for any single entity group across all projects.
Policy Support	The government has extended coal linkage tenure up to 30 years under the Non-Regulated Sector linkage auction framework.
Energy Security	The scheme reduces import dependence on ammonia, methanol, LNG, and urea.
Environmental Benefit	The scheme provides better emission control by reducing pollutants such as sulphur dioxide and nitrogen oxides.
Economic Impact	The scheme is expected to attract investments, generate ₹6,300 crore annual revenue, and support Atmanirbhar Bharat and Make in India initiatives.
Employment	The scheme is likely to create around 50,000 direct and indirect jobs.