The Central Government has approved a Rs 37,500 crore coal and lignite gasification project. Expressing gratitude to Prime Minister Narendra Modi, Chief Minister Dr. Mohan Yadav said that this will strengthen energy security, reduce import dependence and create 50 thousand jobs.
Bhopal. Chief Minister Dr. Mohan Yadav has expressed gratitude to Prime Minister Narendra Modi for the Central Government’s approval of the incentive scheme for coal and lignite gasification projects found near the earth’s surface with a financial outlay of Rs 37 thousand 500 crore.
Chief Minister Dr. Yadav said that under the leadership of Prime Minister Modi, the Central Government is continuously taking major decisions to strengthen the energy sector and advance the goal of self-reliant India. This scheme will increase the energy capacity of the country and new employment opportunities will also be created.
About 50 thousand jobs will be created through 25 coal gasification projects.
Chief Minister Dr. Mohan Yadav said that the Union Cabinet chaired by Prime Minister Modi has approved the incentive scheme for coal and lignite gasification projects located near the earth’s surface. He said that 25 projects will be developed under this scheme, through which about 50 thousand jobs are likely to be created. This will also boost investment in the energy sector and develop new long-term prospects for coal gasification projects.
Coal Gasification Scheme will strengthen energy security
The Union Cabinet approved this ambitious plan in its meeting held on Wednesday. The objective of this scheme is to accelerate India’s coal and lignite gasification programme. The government has set a national target of gasification of 100 million tonnes of coal by the year 2030. This scheme is being considered an important step towards achieving the same goal. Chief Minister Dr. Yadav said that this will strengthen the energy security of the country and will help in reducing dependence on import of many essential products.
Preparation to reduce dependence on LNG, urea and methanol imports
The government believes that this scheme will reduce the import of important products like Liquefied Natural Gas (LNG), Urea, Ammonia and Methanol. At present, more than 50 percent of the requirement of LNG in the country is met by imports. Whereas about 20 percent of urea, 100 percent of ammonia and 80 to 90 percent of methanol is imported. The coal gasification scheme will help in increasing self-reliance by promoting domestic production of these products.
Coal Linkage Agreement period extended to 30 years
The central government has also made a major reform with this scheme. The period of coal linkage has been increased to 30 years for projects converting coal to synthetic gas in the Non-Regulated Sector (NRS) linkage auction framework. Coal linkage refers to long-term supply agreements between coal producing companies and coal consuming industries. The government believes that this decision will increase the confidence of investors and encourage large-scale investment in coal gasification projects.
India’s huge coal and lignite reserves will be better utilized
It is noteworthy that India has about 401 billion tonnes of coal reserves and about 47 billion tonnes of lignite available. The share of coal in the country’s total energy mix is more than 55 percent. Coal and lignite are converted into synthetic gas through the gasification process. This gas is considered a versatile raw material used in the production of fuel and various chemicals. According to experts, this technology will promote energy and chemical production at domestic level and reduce the expenditure on imports.