Why in news
- Government permitted developers under the Rs 37,500-crore coal gasification scheme to use imported coal without a domestic linkage guarantee.
- Foreign companies selected to set up units must establish a local Indian entity.
What is the Coal Gasification Scheme?
- Initiative to convert coal into syngas, chemicals, fertilizers, and clean energy fuels.
- Aims to reduce import dependence on natural gas, methanol, and ammonia while utilising domestic energy resources.
Key operational relaxed guidelines
- Developers must arrange their own fuel supply, as the Centre removed mandatory domestic coal allocation guarantees.
- Imported coal is explicitly permitted for feedstock to ensure operational viability of gasification plants.
- Financial support is extended directly to plant and machinery capital costs.
- Foreign entities winning bids are mandated to set up domestic local subsidiaries.
Why it matters
- Solves feedstock constraint for low-ash coal requirements in advanced gasification technologies.
- Accelerates India's target of gasifying 100 million tonnes of coal by 2030.
Key terms
Coal Gasification
Process of producing syngas—a mixture consisting primarily of carbon monoxide, hydrogen, carbon dioxide, natural gas, and water vapour—from coal and water, air, or oxygen.
Syngas
Synthesis gas produced through gasification used as an intermediate for synthetic natural gas or chemical manufacturing.
Prelims facts
- Coal gasification produces syngas composed mainly of carbon monoxide and hydrogen.
- Imported coal is permitted as feedstock without mandatory domestic coal guarantees.
Mains discussion
- Evaluation of coal gasification in balancing industrial feedstock import reduction against carbon emission goals.
Source: Economic Times Industry
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