National Coal Gasification Mission

National Coal Gasification Mission

Recently ‘National Coal Gasification Mission’ (NCGM) has been launched to achieve 100 metric tonnes of coal gasification by the year 2030.

Coal gasification is the process of converting coal into synthesis gas (also known as syngas). It is a mixture of hydrogen (H2), carbon monoxide (CO) and carbon dioxide (CO2).

Need for Coal Gasification in India:

  • Environment friendly: Coal gasification is considered to be a cleaner alternative than coal combustion.
  • Multiple applications: Syngas produced from coal gasification can be used in the production of synthetic natural gas (SNO), energy fuels (methanol and ethanol), ammonia for fertilizers and petro-chemicals.
  • These products will help in moving towards self-reliance under Atmanirbhar Bharat Abhiyan.
  • To exploit untapped reserves: Most of India’s known coal reserves cannot be tapped. Underground coal gasification can help extract abundant reserves that are deep, scattered and forested.

Key components of the mission:

  • Mapping the gasification potential of coal fields especially in Northeast India,
  • Development of indigenous technology suitable for various feedstocks (low ash content coal, pet coke mixed coal and high ash coal),
  • Development of suitable business models for setting up various projects,
  • marketing strategy for final products,
  • Coordination with various stakeholder ministries,
  • Assigning quantitative targets to various companies and monitoring the implementation of activities. Recommended Major Incentives/Policy Supporters – Rs.400 per tonne of GST on the quantity of coal consumed and/or sold for coal gasification. Exemption of reimbursement cess.
  • Tax free period for 15 years for coal gasification projects,
  • Subsidy for purchase of capital equipment, interest rate subsidy etc. may be provided.

Source – The Hindu

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