cabinet-greenlights-ambitious-coal-gasification-initiative-and-international-collaborations

In a significant move, the Cabinet, led by Prime Minister Shri Narendra Modi, has given the nod to a pioneering scheme aimed at fostering Coal/Lignite Gasification Projects by both Government Public Sector Undertakings (PSUs) and the Private Sector. With a substantial allocation of Rs.8,500 crore designated as incentives for coal gasification projects, the scheme is structured under three distinctive categories.

 

Here are the approved details:

 

Overall Outlay: The scheme encompasses a total outlay of Rs.8,500 crore, intended to provide financial assistance across three categories of coal gasification projects.

 

Category I - Government PSUs: A provision of Rs.4,050 crore is set aside for Government PSUs, supporting up to 3 projects with a lump-sum grant of Rs.1,350 crore or 15% of the capital expenditure (capex), whichever is lower.

 

Category II - Private Sector and Government PSUs: A budget of Rs.3,850 crore is allocated for both private and Government PSUs. Each project in this category will receive a lump-sum grant of Rs.1,000 crore or 15% of capex, whichever is lower. At least one project will be bid out through a tariff-based bidding process, with criteria formulated in consultation with NITI Aayog.

 

Category III - Demonstration Projects: An allocation of Rs.600 crore is designated for indigenous technology demonstration projects and small-scale product-based Gasification Plants. The selected entity in this category, with a minimum capex of Rs.100 crore and a minimum production of 1500 Nm3/hr Syn gas, will receive a lump-sum grant of Rs.100 crore or 15% of capex, whichever is lower.

 

Selection Process:  Entities under Category II and III will be chosen through a competitive and transparent bidding process.

 

Grant Disbursement: Grants will be disbursed to the selected entities in two equal instalments.

 

Empowerment of EGoS: The Empowered Group of Secretaries (EGoS) chaired by the Secretary of Coal will have full authority to make necessary changes in the scheme's modalities, provided the overall financial outlay remains within Rs.8,500 crore.

 

In another development, the Union Cabinet was informed about the signing of a Memorandum of Understanding (MoU) between the Ministry of Electronics and Information Technology of India and the Ministry of Transport, Communications, and Information Technology of Oman. Effective December 15, 2023, the MoU aims to enhance cooperation in Information Technology, promoting mutual support, technology sharing, and investments over a three-year period.

 

The Cabinet also approved a proposal for the establishment of a Joint Economic and Trade Committee (JETCO) between the Department of Commerce, the Ministry of Commerce and Industry of India, and the Ministry of Foreign Affairs of the Dominican Republic.

 

This move is expected to deepen economic ties, providing a platform for discussions, exchanging information, and facilitating trade and industry. 

 

The JETCO will contribute to better employment opportunities for professionals in both nations and potentially open doors to broader markets in Latin America and the Caribbean.