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, categorized into three categories.

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

The Ministry has initiated the stakeholder engagement by floating three Requests for Proposal (RFPs), inviting feedback until March 20, 2024. All stakeholders are encouraged to provide their feedback to email: hitlar.singh[at]nic[dot]in . This proactive measure underscores the Ministry's dedication to advancing coal gasification projects, with the intention of finalizing the RFPs in March 2024.

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