The government has reportedly approved an important proposal to convert coal into gas. Major players including Coal India, BHEL, GAIL and Indian Oil have officially signed agreements to participate in the initiative, a report cnbc awaz Said.

Latest Update on Coal Gasification Initiative

The government will provide financial incentives to promote coal gasification, committing to offer capital support for setting up the necessary plants and machinery, the report said.

Reportedly, several private companies like Adani Enterprises and Deepak Fertilizer have already expressed interest in the initiative. Public Sector Undertaking (PSU) projects will get capital assistance of Rs 1,350 crore per plant.

Apart from this, private enterprises will get capital assistance of Rs 1,000 crore.

The report said that an official notification in this regard is expected soon.

What is coal gasification?

Coal gasification, the process of converting coal to gas, involves the controlled oxidation of coal through oxygen, steam or carbon dioxide, without direct combustion.

Using free energy for various applications, this approach emerges as a sustainable energy solution.

Internationally, this technology is used to produce a variety of valuable products including methanol, ammonia, ethanol and electricity.

National Coal Gasification Mission

The government has already launched the National Coal Gasification Mission to achieve gasification and liquefaction of 100 metric tonnes of coal by 2030. In line with the Mission Document, Coal India has signed MoUs with BHEL, GAIL and IOCL to take up coal gasification projects. Country.