Context
The Union government’s ₹37,500-crore financial incentive scheme for coal/lignite gasification has reportedly received no applications so far. The scheme seeks to support India’s target of gasifying 100 million tonnes of coal by 2030 and reduce dependence on imported fuels and chemical feedstocks.
Explanation
- Coal gasification converts coal or lignite into synthesis gas (syngas) by reacting it with a controlled amount of oxygen/air and steam at high temperature.
- Syngas mainly contains carbon monoxide (CO) and hydrogen (H₂) and can be processed into methanol, hydrogen, synthetic natural gas, fertilisers and other chemicals.
- Unlike conventional coal combustion, gasification does not simply burn coal to directly produce heat; it converts coal into a more versatile gaseous feedstock.
- India promotes gasification to utilise its large domestic coal resources while reducing dependence on imports of natural gas/LNG, methanol and fertiliser feedstocks.
- The ₹37,500-crore financial incentive scheme supports both public-sector and private-sector coal/lignite gasification projects.
- Key challenges include high capital costs, technological complexity, water requirements, carbon emissions and uncertain commercial viability.
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