India goes for coal gasification projects

India is at present importing 12 million metric tons per annum of natural gas for fertilizers and 28 million metric tons of LPG for domestic consumption. Government has therefore decided to encourage coal gasification projects.

The first project will start in six months including tenders and production will start by 2028-29.For implementing the coal gasification projects , the Government has created a joint venture of Coal India and Gas Authority of India  and a single project in Eastern coalfields command area will have investment of Rs 13,052 crores.  Another Coal India and Bharat Heavy Electricals joint venture has been created with total investment of Rs 11,782 crore in Sambalpur of Odisha.  Both the projects will be operationalized by 2028-29.

The coal gasification projects will not only reduce pollution in the country but hundreds of products will come out of the processes, including synthetic gases. The Minister said India “can’t stop coal mining because the resource is mainly located in the most backward areas of the country.”

Briefing newspersons on the outcome of the cabinet meeting, Coal and Mines Minister Pralhad Joshi said India has one of the largest reserves of coal. As per latest reviews last week, other than current exploration, India has 361 billion tons proven reserves of coal.  “Even if we mine even half of it, it is sufficient for the country’s requirements for 125 years,” he said. At present, 80 per cent of the present mined coal is used for electricity production.

As Indian coal has high ash content and limited technology is available, the Ministry sought viability gap funding from the Government and the Prime Minister sanctioned Rs 8,500 crores for the project at the Cabinet meeting. Out of this amount, Rs 4,050 crore will be for the two joint ventures.