Lok Sabha Question No. 3020 (UNSTARRED), answered on 2025-03-19
Subject: Coal Gasification Initiative
Ministry: COAL
Asked by: Shri Radheshyam Rathiya, Shri Chhatrapal Singh Gangwar

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 3020

TO BE ANSWERED ON 19.03.2025

## Coal Gasification Initiative

## 3020.   Shri Radheshyam Rathiya: Shri Chhatrapal Singh Gangwar::

Will the Minister of Coal be pleased to state:

(a) the details of the coal gasification initiative showcased at the pavilion;

(b) the manner in which the said initiative aligns with the vision of Developed India 2047;

(c) whether the Government has conducted any impact assessment of the financial incentive scheme for coal gasification projects;

(d) if so, the details thereof;

(e) the steps being taken by the Coal India Limited (CIL) for acquisition of critical minerals like lithium and cobalt; and

(f) the manner in which the said efforts are likely to reduce import dependence of India?

## ANSWER MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a): The coal gasification initiatives taken by the Government are as under:

(i) On January 24, 2024 the Government has approved an outlay of ₹ 8,500 crore as financial incentive, for promotion of coal/lignite gasification projects for both government PSUs as well as private sector.

(ii) Government has also approved investment by Coal India Limited (CIL) in joint ventures of CIL-BHEL and CIL-GAIL for undertaking coal gasification projects.

(iii) In  2022,  a  new  sub-sector,  "Production  of  Syngas  leading  to  coal  gasification,"  was created under the NRS linkage auctions policy to support this initiative. Further under this sector  the  government  has  allowed  auction  with  a  floor  price  at  the  notified  price  of  the regulated sector, for the projects commissioning within the next seven years.

(iv) 50% rebate in the revenue share for coal used in gasification has been introduced in commercial coal block auctions, provided that at least 10% of the total coal production is used for gasification purposes.

(b): Coal is  one  of  the  most  abundant  natural  resources  in  the  country.  Coal  gasification technology  enables  conversion  of  coal  into  syngas  (synthetic  gas),  which  can  be  used  to produce downstream products like methanol, ammonium nitrate, Synthetic Natural Gas (SNG) and Fertilizers etc.  Coal  gasification  technology  provides  alternative  use  of  coal  promoting environmental sustainability to align with vision of developed India 2047.

(c)&(d): The Government has not conducted any specific impact assessment of the financial incentive scheme for coal gasification projects.

(e):  Coal India Limited (CIL), a CPSE under Ministry of Coal, has secured Khattali Chhoti Graphite  Block  in  Madhya  Pradesh,  India  through  e-  auction  of  critical  mineral  blocks conducted by Ministry of Mines. Besides, CIL has also signed Non-Disclosure Agreement with an  Argentinian  company  and  an  Australian  company  for  acquisition  of  lithium  assets  in Argentina.

(f):   The  Government  has, inter-alia ,  taken  the  following  steps  to  reduce  India's  import dependency and build supply chain resilience in critical minerals:

- Central  Government  has  been  empowered  to  exclusively  auction  mining  lease  and composite  license  for  24  critical  minerals,  with  an  aim  to  increase  exploration  and mining of critical minerals and ensure self-sufficiency in their supply.
- The  Government  has  announced  in  the  Union  Budget  2024-25  the  setting  up  of  a Critical  Mineral  Mission  for  a  harmonized  approach  in  areas  including  domestic production, recycling, overseas acquisition of critical mineral assets and research & development (R&D).

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