New Delhi: To propel the clean energy sector, the Ministry of Coal has issued three draft Requests for Proposals (RFPs) to garner insights from both Government Public Sector Undertakings (PSUs) and private investors for the establishment of coal gasification plants in India. This strategic initiative follows the recent approval by the Cabinet of a financial assistance scheme, allocating a substantial ₹ 8500 crores to incentivize coal gasification projects, categorized into three distinct groups.
The draft RFPs have been separately formulated for each of the three categories. Category I earmarks Rs. 4,050 crores exclusively for Government PSUs, supporting up to three projects. The financial assistance includes a lump-sum grant of Rs. 1,350 crores or 15% of the capital expenditure, whichever is lower.
Category II, with a budget of Rs. 3,850 crores, is designed to benefit both the private sector and Government PSUs. Each project under this category will receive a lump-sum grant of Rs. 1,000 crores or 15% of the capital expenditure. Notably, at least one project within this category will undergo a tariff-based bidding process, enhancing competition and innovation.
Category III focuses on Demonstration Projects and small-scale Gasification Plants, allocating Rs. 600 crores for entities with a minimum capital expenditure of Rs. 100 crores and a minimum production of 1500 Nm3/hr Syn gas. The financial support for projects falling under this category includes a lump-sum grant of Rs. 100 crores or 15% of the capital expenditure.
To ensure transparency and inclusivity, the Ministry has initiated stakeholder engagement by floating the three Requests for Proposal (RFPs), inviting valuable feedback until March 20, 2024. Stakeholders, including interested parties from the public and private sectors, are encouraged to provide their insights and suggestions to the designated email: hitlar.singh[at]nic[dot]in.
This proactive measure reflects the Ministry’s commitment to advancing coal gasification projects and fostering a collaborative approach to sustainable energy solutions. The intention is to finalize the RFPs by March 2024, paving the way for a new era of innovation and environmental consciousness in India’s energy landscape.
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