Why in news
- The Ministry of Coal's Rs 37,500-crore financial incentive scheme for coal gasification projects received no bids from private or public entities prior to its deadline.
Key terms
Coal Gasification
Process of converting coal into synthesis gas (syngas) comprising carbon monoxide, hydrogen, and carbon dioxide.
Syngas
A fuel gas mixture used as an intermediate in producing synthetic natural gas, ammonia, or methanol.
What is the Coal Gasification Scheme?
- A national incentive framework designed to convert domestic coal into syngas, chemicals, and clean energy fuels.
- Aims to achieve 100 million tonnes of coal gasification by 2030 to reduce reliance on imported natural gas and crude derivatives.
Key execution issues
- Zero market response due to high capital expenditure requirements, technology risks, and uncompetitive pricing against natural gas.
- Exposes persistent viability gaps in clean coal technology adoption without long-term off-take guarantees.
Why it matters
- Imperils India's targets for coal-based syngas production and clean coal technology adoption.
- Highlights the trade-off between domestic high-ash coal utilisation and clean energy transition economics.
Prelims facts
- Coal gasification produces syngas, a raw material for urea and synthetic natural gas production.
Mains discussion
- Financial and technological impediments to scaling clean coal technologies in India.
Source: Economic Times Industry
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