Ministry of Coal releases draft RFPs for coal gasification projects in India

Financial scheme offers grants to PSUs and private investors; stakeholder feedback invited until March 20.

 The Ministry of Coal has taken a significant step by issuing three draft Requests for Proposals (RFPs) to solicit feedback from interested Government PSUs and Private Investors for the establishment of coal gasification plants in India. This move comes in the wake of the Cabinet’s approval of a financial assistance scheme, allocating ₹ 8500 crores for incentives towards coal gasification projects, categorised into three categories.

Draft requests for proposals (RFPs) have been issued separately for each of the three categories. Category I allocates ₹4,050 crores to Government PSUs to support up to 3 projects, offering a lump-sum grant of ₹ 1,350 crores or 15 percent of the capital expenditure, whichever is lower. In Category II, ₹ 3,850 crores are earmarked for both the Private Sector and Government PSUs, providing each project with a lump-sum grant of ₹1,000 crores or 15 percent of the capital expenditure. Additionally, at least one project in this category will undergo a tariff-based bidding process. Category III includes ₹ 600 crores for Demonstration Projects and small-scale Gasification Plants, offering a lump-sum grant of ₹ 100 crores or 15 percent of the capital expenditure to entities with a minimum Capex of ₹ 100 Crore and minimum production of 1500 Nm3/hr Syn gas.