The Authorities of India is ready to introduce a brand new coverage on coal gasification by June, geared toward boosting the nation’s home coal fuel manufacturing and lowering its dependence on imports.

In response to sources, the coverage will embrace a number of incentives to encourage personal sector participation in coal gasification tasks. These embrace exemptions from income sharing, capital help within the type of viability hole funding (VGF), tax incentives, and warranted availability of coal.

To encourage firms to undertake this expertise, the brand new coverage will present exemptions in income sharing for the primary few years of operation. This may assist cut back the monetary burden on firms and encourage them to speculate on this expertise, as the price of producing fuel could be round 19$ per MGBTU, which is excessive. So, wanted monetary help for producing fuel from coal. At present, the spot is buying and selling round 12$ per MGBTU, which reached 57$ final 12 months.

As well as, the coverage will present capital help within the type of VGF (Viability Hole Funding) to cowl the hole between the venture value and the funds obtainable from traders. This may assist in attracting extra traders and can make sure the well timed completion of tasks.

Moreover, the coverage may even present tax incentives to firms adopting coal gasification expertise. This may embrace a discount in tax charges and exemptions on sure taxes, and assist cut back the general value of the venture thereby making it extra engaging to traders.

The coverage may even make sure the assured availability of coal for firms adopting this expertise. This might be accomplished by allocating coal blocks to those firms, guaranteeing a gentle provide of coal.

“The brand new coverage is geared toward incentivizing personal sector participation in coal gasification tasks, that are vital to our efforts to cut back dependence on imports and increase home manufacturing,” stated a authorities official, who declined to be named.

Total, the brand new coverage on coal gasification is anticipated to supply a much-needed increase to this expertise and can assist cut back India’s dependence on imported fuel. The incentives offered within the coverage will make this expertise extra engaging to traders and encourage extra firms to undertake it.

Lately, the coal ministry reviewed the standing of progress of gasification by PSU firms. Final 12 months, the PSU firms had signed an MOU on this regard.