New Delhi: The Niti Aayog has flagged the issue of incompatible gasification technology for the high ash content coal available in India, saying the on-ground progress on coal gasification has been limited despite issuance of letters of award.
The government's think tank will soon hold discussions with stakeholder ministries as well as domestic and international experts to select the technology best suited for gasification of Indian coal to support commercial scale and viable deployment.
NITI Aayog member VK Saraswat has written to coal secretary Vikram Dev Dutt, highlighting the challenges being faced by the public and the private sector in coal gasification and seeking the views of the coal ministry to firm up the roadmap. ET has seen a copy of the letter.
The government has set a target to gasify 100 mt coal by 2030 with a proposed investment of about ₹4 lakh crore. In 2024, it launched the ₹8,500 crore viability gap funding scheme to support coal and lignite gasification projects. Following this, it issued letters of award to companies including Bharat Coal Gasification and Chemicals, Coal India, Jindal Steel and Power, New Era Cleantech Solutions and Greta Energy.
"Not much progress has taken place so far in terms of actual on-ground deployment of the project majorly due to selection for right coal gasification technologies and robust business models around it," the letter said.
The Aayog is of the view that it is essential to match gasification technology design to feedstock properties for stable operations, energy efficiency and economic viability.
Indian coal has high ash content, ranging from 30-45% and a high alumina-silica composition owing to which many global technologies available are unsuitable for gasification of Indian coal without adaptation.
Coal gasification is expected to help India achieve energy security and self-reliance, reducing dependence on imports of natural gas, methanol, ammonium nitrate and other products.
Coal gasification technology enables conversion of coal into synthetic gas, which can be used to produce downstream products such as methanol, ammonium nitrate, synthetic natural gas and fertilizers.
The government's think tank will soon hold discussions with stakeholder ministries as well as domestic and international experts to select the technology best suited for gasification of Indian coal to support commercial scale and viable deployment.
NITI Aayog member VK Saraswat has written to coal secretary Vikram Dev Dutt, highlighting the challenges being faced by the public and the private sector in coal gasification and seeking the views of the coal ministry to firm up the roadmap. ET has seen a copy of the letter.
The government has set a target to gasify 100 mt coal by 2030 with a proposed investment of about ₹4 lakh crore. In 2024, it launched the ₹8,500 crore viability gap funding scheme to support coal and lignite gasification projects. Following this, it issued letters of award to companies including Bharat Coal Gasification and Chemicals, Coal India, Jindal Steel and Power, New Era Cleantech Solutions and Greta Energy.
"Not much progress has taken place so far in terms of actual on-ground deployment of the project majorly due to selection for right coal gasification technologies and robust business models around it," the letter said.
The Aayog is of the view that it is essential to match gasification technology design to feedstock properties for stable operations, energy efficiency and economic viability.
Indian coal has high ash content, ranging from 30-45% and a high alumina-silica composition owing to which many global technologies available are unsuitable for gasification of Indian coal without adaptation.
Coal gasification is expected to help India achieve energy security and self-reliance, reducing dependence on imports of natural gas, methanol, ammonium nitrate and other products.
Coal gasification technology enables conversion of coal into synthetic gas, which can be used to produce downstream products such as methanol, ammonium nitrate, synthetic natural gas and fertilizers.
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