**Summary:**
In response to Lok Sabha Unstarred Question No. 1634, the Ministry of Coal outlined the Government of India's efforts to promote coal and lignite gasification in both the public and private sectors. Key initiatives include:
1. **Financial Incentive Scheme:** A financial incentive scheme with an outlay of ₹8,500 crore was approved on January 24, 2024, for PSUs and the private sector.
2. **NRS Linkage Auctions Policy:** A new subsector, "Production of Syngas leading to coal gasification," has been created under the Non-Regulated Sector (NRS) linkage auctions policy to support coal gasification initiatives. Coal supply to gasification projects under the NRS auction will be at the Notified Price of the regulated sector, for projects commissioning within the next seven years.
3. **Revenue Share Rebate:** A 50% rebate in the revenue share for coal used in gasification has been introduced in commercial coal block auctions, provided that at least 10% of the total coal production is used for gasification purposes.
4. **Technology Transfer:** A framework has been established for granting waivers from registration for Transfer of Technology (ToT) from land-border-sharing countries on a case-by-case basis. One waiver has already been granted.
Regarding financial assistance, the ₹8,500 crore financial incentive scheme has three categories:
* **Category I:** ₹4,050 crore earmarked for PSUs. Three projects have been approved, each receiving ₹1,350 crore in government assistance.
* **Category II:** ₹3,850 crore available to both private sector and PSUs. Three private sector projects have been approved, receiving a total of ₹1,983.06 crore in government assistance.
* **Category III:** ₹600 crore allocated for demonstration or small-scale projects. One private sector project has been approved, receiving ₹100 crore in government assistance.
In total, seven projects have been approved under the financial incentive scheme across these three categories.
Key Entities Referenced
Ministry of Coal: The Indian government ministry responsible for coal and lignite.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
SHRI G. KISHAN REDDY: The Minister of Coal and Mines who provided the answer.
Coal and Lignite Gasification: The subject of the question and the focus of the government's efforts.
Non-Regulated Sector NRS linkage auctions policy: A policy to support coal gasification by creating a new subsector for Syngas production.
8,500 crore financial incentive scheme: A financial incentive scheme approved by the government to promote coal and lignite gasification in both public and private sectors.
Transfer of Technology ToT: Transfer of Technology ToT from landbordersharing countries on a casebycase basis.
PSUs: Public Sector Undertakings, which are state-owned enterprises in India, eligible for financial incentives.
GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
UNSTARRED QUESTION NO 1634
TO BE ANSWERED ON 30.07.2025
COAL AND LIGNITE GASIFICATION
1634. SHRI CHANDAN CHAUHAN:
SHRI PRADEEP KUMAR SINGH:
SHRI NARAYAN TATU RANE:
SHRI BHARATBHAI MANUBHAI SUTARIYA:
SHRI ANURAG SINGH THAKUR:
DR. PRASHANT YADAORAO PADOLE:
SHRI BIPLAB KUMAR DEB:
SHRI KRIPANATH MALLAH:
Will the Minister of Coal be pleased to state:
(a) the details of the efforts made by the Government to promote coal and lignite gasification
in the public and private sectors; and
(b) the financial assistance sanctioned by the Government so far to promote coal and lignite
gasification projects?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a): The Government has, inter alia, taken the following initiatives to promote coal and lignite
gasification in the public and private sectors-
• On January 24, 2024, the Government has approved a financial incentive scheme for
PSUs and private sector with an outlay of ₹ 8,500 crore.
• A new sub-sector, "Production of Syngas leading to coal gasification," has been created
under the Non-Regulated Sector (NRS) linkage auctions policy to support coal
gasification initiative.
• The Government has allowed coal supply to gasification projects under the NRS
auction with floor price at the Notified Price of the regulated sector, for the projects
commissioning within the next seven years.
• 50% rebate in the revenue share for coal used in gasification has been introduced in
commercial coal block auctions, provided that at least 10% of the total coal production
is used for gasification purposes.
1• A framework has been established for granting waivers from registration for Transfer
of Technology (ToT) from land-border-sharing countries on a case-by-case basis.
Waiver to one application has been granted.
(b): The aforesaid ₹8500 crore financial incentive scheme has the following three categories
against which a total of 7 (seven) projects have been approved –
• Category I - with a provision of ₹4,050 crores under which only PSUs were entitled to
apply, a total of three projects with Government assistance of ₹1,350 crores each have
been approved.
• Category II - with a provision of ₹3,850 crores under which both private sector and
PSUs were entitled to apply, a total of three private sector projects with Government
assistance amounting to ₹1,983.06 crores have been approved.
• Category III - with a provision of ₹600 crores for demonstration or small-scale
projects, one private sector project with ₹100 crores of Government assistance has been
approved.
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