Date: 2026-04-29Category: Press ReleaseState: Union GovernmentCountry: India
Ministry of Coal Issues Letter of Award to Selected Applicant under Category III of Round II of the Financial Incentive Scheme for Promotion of Coal Gasification Projects
**Summary of Ministry of Coal Letter of Award Issuance for Coal Gasification Project**
**Overview**
On April 29, 2026, the Ministry of Coal achieved a significant milestone in India’s coal gasification mission by issuing a Letter of Award (LoA) under Category III of Round II of the ₹8,500 crore Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects. The LoA was presented by Shri Sanoj Kumar Jha, Additional Secretary, Ministry of Coal.
**Project Details**
The LoA was awarded to **Kartikay Vayunandana Private Limited** for the establishment of a small-scale coal-to-acetic acid plant. Key project metrics include:
* **Location:** Gadchiroli, Maharashtra.
* **Total Investment:** ₹793 crore.
* **Installed Capacity:** 75,900 Tonnes Per Annum (TPA).
* **Primary Output:** Acetic acid derived from value-added domestic coal utilization.
**Scheme Framework and Incentives**
The project falls under the broader ₹8,500 crore Financial Incentive Scheme, which currently has seven projects under implementation from its first round.
* **Category III Focus:** This category specifically supports demonstration projects and small-scale, product-based plants.
* **Financial Assistance:** Eligible projects under Category III receive financial support of up to ₹100 crore per project or 15% of the capital expenditure (Capex), whichever is lower.
**Strategic Objectives**
The initiative is designed to:
* Advance the "Atmanirbhar Bharat" (Self-Reliant India) mission by boosting indigenous production of downstream chemicals.
* Reduce national dependence on imports.
* Foster a sustainable industrial ecosystem through cleaner and more efficient utilization of domestic coal resources.
* Encourage innovation and the accelerated adoption of gasification technologies.
**Administrative Information**
* **Issuing Authority:** PIB Delhi / Ministry of Coal
* **Release ID:** 2256685
* **Signatory:** Shuhaib T
Key Entities Referenced
Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects: A ₹8,500 crore government initiative providing financial assistance to projects across various categories to advance India’s coal gasification mission.
Ministry of Coal: The primary government body responsible for implementing the coal gasification mission and issuing Letters of Award to selected project applicants.
Kartikay Vayunandana Private Limited: The selected private applicant awarded the project to establish a coal-to-acetic acid small-scale plant with an investment of ₹793 crore.
Gadchiroli, Maharashtra: The central location for the establishment and operation of the newly awarded coal-to-acetic acid plant.
Ministry of Coal
Ministry of Coal Issues Letter of Award to
Selected Applicant under Category III of Round II
of the Financial Incentive Scheme for Promotion
of Coal Gasification Projects
Posted On: 29 APR 2026 6:28PM by PIB Delhi
The Ministry of Coal has marked a major milestone in advancing India’s coal gasification mission with
the issuance of a Letter of Award (LoA) under Category III of Round II of the ₹8,500 crore Financial
Incentive Scheme for Promotion of Coal/Lignite Gasification Projects.
Shri Sanoj Kumar Jha, Additional Secretary, Ministry of Coal, awarded the LOA to Kartikay Vayunandana
Private Limited for setting up a coal-to-acetic acid small-scale plant in Gadchiroli, Maharashtra. With an
investment of ₹793 crore, the project will produce acetic acid with an installed capacity of 75,900
TPA, marking a significant step towards value-added utilisation of domestic coal.
The Scheme continues to gain strong momentum, with seven projects already under implementation in the
first round. To further accelerate investments, Requests for Proposals (RFPs) for Round II were invited
under Category II and Category III, encouraging participation in coal/lignite gasification projects.
Category III supports Demonstration Projects and Small-Scale, product-based plants, with financial
assistance of up to ₹100 crore per project or 15% of the Capex, whichever is lower, enabling innovation
and faster adoption of gasification technologies.The project is expected to boost indigenous production of downstream chemicals, reduce import
dependence, and strengthen India’s journey towards Atmanirbhar Bharat. It also reinforces the
Government’s commitment to building a sustainable industrial ecosystem through cleaner and more
efficient utilisation of coal resources.
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Shuhaib T
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