The Ministry of Coal has announced applicants under Category-II

 The Ministry of Coal has announced applicants under Category-II of the Financial Incentive Scheme (FIS), aimed at promoting coal gasification and supporting the National Coal Gasification Mission.

About FIS:

• Launched: 2024
• Outlay: ₹8,500 crore
• Implemented by: Ministry of Coal
• Objective: To encourage both private and public sectors to undertake coal gasification projects.
• Categories: Applicants under Category I and III were announced previously.

About Coal Gasification:

Definition: Coal gasification is a process that transforms carbon-rich materials like coal into fuel gas or synthesis gas (syngas), which serves as an intermediate in producing synthetic natural gas. Syngas primarily consists of carbon monoxide (CO) and hydrogen (H2).

Process: This occurs in a gasifier, a high-temperature, high-pressure vessel where coal is exposed to oxygen and steam to produce syngas.

Importance of Coal Gasification:

• Cleaner Energy: Coal is converted into a gaseous fuel, which is easier to handle and cleaner compared to its solid form.
• Use in the Chemical and Petrochemical Industry: Syngas can be utilized to produce methanol, ethanol, olefins, and more.
• Applications of Syngas: It can be used in various industries, including the production of ammonia, hydrogen, as a substitute for natural gas, as a reduction agent in the steel industry, and in electricity generation.

Significance for India:

• It enables the utilization of India’s abundant coal reserves (378.21 billion tonnes, National Coal Inventory, 2023), reducing reliance on imported oil and gas.

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