Coal India, BHEL may hiss on this government announcement; details here | Markets News – Business Standard
As the government has sought feedback from interested governments as well as private entities for setting up coal gasification plants in the country, shares of NLC India, Coal India, Indian Oil Corporation, BHEL and Gail India will be in the spotlight on Thursday. March 7th.
According to a government statement, the Coal Ministry has submitted three draft requests for proposals (RFPs) for consultation on a coal gasification plan.
This comes after the Union Cabinet’s approval last month for allocation of Rs 8,500 crore for incentives for coal gasification projects, which are in three categories.
Category I of the scheme awards Rs 4,050 crore to the PSUs to support up to three projects, offering a lump sum subsidy of Rs 1,350 crore or 15 percent of the capital expenditure, whichever is lower.
In Category II, Rs 3,850 crore has been earmarked for both the private sector and PSUs, with each project getting a lump sum subsidy of Rs 1,000 crore or 15 percent of the capital expenditure.
Category III includes Rs 600 crore for demonstration projects and small scale gasification plants, providing lump sum subsidy of Rs 100 crore or 15 per cent of capital expenditure to entities with minimum capital investment of Rs 100 crore and minimum production of 1,500 normal meters cubed per hour of synthesis gas (syngas).
The National Coal Gasification Mission aims to gasify 100 million tonnes of coal through surface coal and lignite gasification projects by 2030, the government said.
Stakeholders can submit their feedback and suggestions until March 20.
First print: March 7, 2024 | 08:00 IST