The Ministry of Coal has issued three draft requests for proposals (RFPs) to solicit feedback from interested government public sector undertakings (PSUs) and private investors for the establishment of coal gasification plants in India.
This move is inlinw with the Cabinet’s approval of a financial assistance scheme, allocating Rs 85 billion for incentives towards coal gasification projects, categorised into three categories. The draft RFPs have been issued separately for each of the three categories. Category I allocates Rs 40.50 billion to government PSUs to support up to three projects, offering a lump-sum grant of Rs 13.50 billion or 15 per cent of the capital expenditure, whichever is lower. In Category II, Rs 38.50 billion are earmarked for both the private sector and government PSUs, providing each project with a lump-sum grant of Rs 10 billion or 15 per cent of the capital expenditure. Additionally, at least one project in this category will undergo a tariff-based bidding process. Category III includes Rs 6 billion for demonstration projects and small-scale gasification plants, offering a lump-sum grant of Rs 1 billion or 15 per cent of the capital expenditure to entities with a minimum capex of Rs 1 billion and minimum production of 1500 Nm3 per hour syn gas.