Coal ministry allows 50% concession in revenue share for coal gasification

Speaking at an investors meet in Mumbai, Joshi also pitched for options like manufacturing hydrogen from coal to help India become energy independent. Earlier during the day he launched the revival programme of closed /discontinued mines of Coal India Ltd on revenue sharing model.

The investor's meet on 'Coal Gasification - Way Forward' in Mumbai was organised by Coal India and FICCI. The investor meet-cum-workshop was aimed at encouraging effective implementation of coal gasification projects and also to ensure ease of doing business in this area.

‘Coal Gasification is the need of the hour and a step towards sustainable future,” union minister of state for coal, mines and railways, Raosaheb Patil Danve, said, adding that the government has set a gasification target of 100 million tonne coal by 2030. "This will generate jobs in both technical and non-technical sector," he said.

Coal gasification is considered as cleaner option compared to burning of coal. Gasification facilitates utilisation of the chemical properties of coal. Union minister  Pralhad Joshi wanted the industry to think about 'coal to Hydrogen' option. Joshi also launched a report 'Roadmap for Coal to Hydrogen', prepared by the ministry of coal during the event.

Besides officials of the coal ministry, experts from industry, consultants, researchers and stakeholders in coal gasification spoke during the event. 

In order to support coal gasification and availability of coal for the sector on a concessional rate, ministry of coal has announced a concessions of 50 per cent in revenue share for commercial auction of coal blocks. If the successful bidder consumes the coal produced either in its own plant(s) or plant of its holding, subsidiary, affiliate, associate for coal gasification or liquefaction or sells the coal for coal gasification or liquefaction on an yearly basis, subject to conditions that at least 10 per cent of scheduled coal production as per approved mining plan for that year shall be consumed or sold for gasification or liquefaction, then the bidder can avail of concessions.

Syn-Gas produced from coal can be used to produce gaseous fuels such as Hydrogen (Blue coupled with CCUS), Substitute Natural Gas (SNG or Methane), Di-Methyl Ether (DME), Liquid Fuels such as Methanol, Ethanol, Synthetic diesel and Chemicals like Methanol derivatives, Olefins, Propylene, Mono-Ethylene Glycol (MEG), nitrogenous fertilisers, including Ammonia, DRI, Industrial Chemicals along with Power Generation. These products will help move towards self-sufficiency under Atmanirbhar Bharat Abhiyaan.