Coal Ministry Greenlights Landmark ₹793 Cr Gasification Venture

The Ministry of Coal has issued a Letter of Award (LoA) under Category III of the ₹8,500 crore Financial Incentive Scheme for Coal and Lignite Gasification Projects, marking a significant step in advancing India’s coal gasification mission.

The LoA has been granted to Kartikay Vayunandana for setting up a coal-to-acetic-acid project in Maharashtra, with a proposed investment of ₹793 crore. The facility is expected to produce 75,900 tonnes of acetic acid annually and serve as a demonstration project to promote wider adoption of coal gasification technology.

This initiative is part of the government’s broader push to enable value-added utilisation of domestic coal and boost downstream chemical production. The scheme has been gaining traction, with several projects already underway under earlier rounds.

Under Category III, projects are eligible for financial assistance of up to ₹100 crore each, aimed at reducing risk and fostering innovation in gasification technologies. The project is expected to strengthen domestic chemical manufacturing, support the Atmanirbhar Bharat initiative, and contribute to cleaner and more efficient use of coal resources.

News by Rahul Yelligetti.