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Concession In Revenue Share To Promote Coal Gasification

Concession In Revenue Share To Promote Coal Gasification:

To help India become energy independent, the Ministry of Coal has proposed 50% concession in revenue share to promote coal gasification.

  • If the successful bidder consumes the coal produced either in its own plant(s) or plant of its holding, subsidiary, affiliate, associate for coal gasification or liquefaction or sells the coal for coal gasification or liquefaction on an yearly basis, subject to conditions that at least 10% of scheduled coal production as per approved mining plan for that year shall be consumed or sold for gasification or liquefaction, then the bidder can avail of concessions.

Coal Gasification:

  • It is considered a cleaner option compared to burning coal.
  • It is the process of producing syngas, a mixture consisting of carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2), natural gas (CH4), and water vapour (H2O).
  • It facilitates utilization of the chemical properties of coal
  • During gasification, coal is blown with oxygen and steam while also being heated under high pressure.
  • During the reaction, oxygen and water molecules oxidize the coal and produce syngas.
  • Benefits:
    • Transporting gas is a lot cheaper than transporting coal.
    • Help address local pollution problems.
    • Has greater efficiency than conventional coal-burning.

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