Cabinet approves setting-up of two coal gasification plants in West Bengal and Odisha

The Government has approved that Coal India Limited (CIL) will set up two Coal Gasification Plants with a view to achieve the target of 100 MT coal gasification by the year 2030 and to fulfil India’s dual objectives of self-reliance and energy independence. Briefing media after the Union Cabinet meeting, 

Union Minister for Coal Pralhad Joshi said that total investment in the joint venture of CIL and GAIL for the proposed Coal-to-Synthetic Natural Gas at Sonepur Bazari Area of Eastern Coalfields Limited in West Bengal will be of 13 thousand 52 crore rupees. 

Mr Joshi informed that for CIL and BHEL Joint Venture for the proposed Coal-to-Ammonium Nitrate at Mahanadi Coalfields Limited in Jharsuguda district of Odisha will be 11 thousand 782 crore rupees. He informed that by 2028 - 29 these



projects will be operationalised.

The Centre has also approved a proposal for equity investment for setting up of Coal-to-Synthetic Natural Gas Project through a Joint venture of Coal India Limited - CIL and Gas Authority of India Limited- GAIL. It has also approved for setting up of the Coal-to-Ammonium Nitrate Project through a Joint venture of  CIL and Bharat Heavy Electrical Limited- BHEL.

In another decision, Pralhad Joshi said, the Union Cabinet has also approved the scheme for the promotion of Coal and Lignite Gasification Projects of Government PSUs and the Private Sector. Mr Joshi said, the total outlay of this scheme is eight thousand 500 crore rupees towards incentive for coal gasification projects under three categories.