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     New Delhi, March 06, 2024: Union Ministry of Coal has taken a significant step of 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 Modi Cabinet’s approval of a financial assistance scheme, allocating ₹ 8500 crore for incentives towards coal gasification projects, categorized into three categories.

     Draft requests for proposals have been issued separately for each of the three categories, Coal Ministry sources said today. 

     Under the Category I Rs. 4,050 crore allocated to Government PSUs to support up to 3 projects, offering a lump-sum grant of Rs. 1,350 crore or 15 per cent of the capital expenditure, whichever is lower.

     In Category II, Rs. 3,850 crore are earmarked for both the Private Sector and Government PSUs, providing each project with a lump-sum grant of Rs. 1,000 crore or 15 per cent of the capital expenditure. Additionally, at least one project in this category will undergo a tariff-based bidding process. 

     Category III includes Rs. 600 crore for Demonstration Projects and small-scale Gasification Plants, offering a lump-sum grant of Rs 100 crore or 15 per cent 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 finalising the RFPs in March 2024, the sources added.

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