Available land close to coal mines under the Ministry of Coal can be offered at a competitive and concessional cost for setting up coal gasification units, M Nagaraju, additional secretary and nominated authority, Ministry of Coal, stated.
Lower Coal Rates for Gasification Projects
The government is formulating a policy to offer coal at rates lower than the market price for coal gasification projects.
This initiative aims to incentivize investment in coal gasification by reducing the operational costs associated with raw material procurement.
M Nagaraju, additional secretary at the Ministry of Coal, highlighted this policy direction during a discussion with industry stakeholders in Mumbai.
Long-Term Coal Linkages
To ensure the sustainability of gasification projects, the government is working on securing long-term coal linkages.
With plans to increase coal production to 1.5-1.6 billion tonnes by 2030, the government aims to eliminate potential coal shortages for gasification projects.
This strategic move seeks to provide stability and certainty in coal supply, crucial for the success of gasification ventures.
Notified Price for Coal
Under the proposed policy, coal will be offered at a “notified price” for gasification projects. This price will be lower than the market rate and equivalent to the price offered to the power sector.
By providing coal at a subsidized rate, the government aims to reduce input costs for gasification units, thereby encouraging their establishment and operation.
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Concessional Land Allocation
In addition to subsidized coal rates, the government plans to allocate land near mines operated by Central Public Sector Undertakings (CPSUs) at concessional prices for setting up gasification plants.
These areas, including de-coaled mines, offer favorable conditions for gasification activities, such as ample water supply.
By facilitating access to suitable land at competitive prices, the government seeks to further support the development of gasification infrastructure.
Conclusion
The government’s proactive approach towards promoting coal gasification reflects its commitment to fostering sustainable energy solutions and reducing dependence on traditional fossil fuels.
By offering favorable incentives such as lower coal rates and concessional land allocation, the government aims to attract investments and accelerate the adoption of clean coal technologies.
These initiatives not only contribute to energy security but also align with broader environmental and economic objectives.
Source – Moneycontrol
