Coal India Limited (CIL) has undertaken various Surface Coal Gasification (SCG) projects currently at different phases of execution, including:
Talcher Fertilizer Plant (Odisha): Talcher Fertilizer Ltd., a joint venture involving CIL, GAIL, RCF, and FCIL, is establishing an integrated coal gasification-based urea plant. This initiative aims to produce 1.27 MMTPA neem-coated Urea by utilizing high ash coal from nearby Talcher coalfields blended with Pet-coke. Construction is ongoing, with progress reported at 51.92% physically and 46.54% financially as of October 2023.
Other Projects: CIL has launched Coal Gasification projects at the pit head of coal mines in ECL, MCL, and WCL. Pre-Feasibility Reports (PFR) for Coal to SNG Project in ECL and Coal to Ammonium Nitrate Project in MCL have been approved by the CIL Board. Additionally, the WCL Board sanctioned the PFR for the Coal to Ammonium Nitrate Project.
Furthering clean coal technologies, NLCIL has initiated plans for a Lignite to Methanol plant in Neyveli, currently at the tendering stage.
The Ministry of Coal has introduced measures to encourage private sector investment in clean coal technologies and efficient mining practices, including a policy offering a 50% rebate in revenue share for future commercial coal block auctions if coal is used for gasification (minimum 10% of total coal production). Additionally, a separate auction window in the Non-Regulated Sector has been established to facilitate coal availability for new coal gasification plants.
In addressing environmental concerns, the government mandates the grant of Environment Clearance for coal gasification projects. Project proponents are required to conduct Environment Impact Assessment studies and formulate an Environment Management Plan, reviewed by an Expert committee under MoEF&CC before commencing any activities related to setting up Coal Gasification Plants.
Union Minister of Coal, Mines, and Parliamentary Affairs Shri Pralhad Joshi provided this information in a written reply in Lok Sabha.