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- Coal Ministry scheme outlay: n 37,500 crore.
- Target: gasification of about 75 million tonnes of coal/lignite.
- Gasification produces syngas, mainly carbon monoxide and hydrogen.
- Syngas can feed chemicals, fertilisers and synthetic fuels.
- Key tension: energy security versus carbon, water and stranded-asset risks.
WHY IN NEWS
- The incentive scheme is in focus as the government seeks investment in domestic coal/lignite gasification.
- It is intended to reduce dependence on selected imported feedstocks while building coal-to-chemicals capability.
TOP DATA & FACTS
- Nodal ministry: **Ministry of Coal.
- Financial outlay**: n 37,500 crore.
- Target: around 75 million tonnes.
- Gasification uses controlled oxygen/steam rather than ordinary complete combustion.
- Syngas can be converted into methanol, synthetic natural gas and chemicals.
- Gasification is not automatically low-carbon.
- Water demand can be substantial.
- Carbon capture can reduce but not eliminate lifecycle emissions.
HISTORICAL PERSPECTIVE
- Coal has historically dominated India's energy system. Coal-to-chemicals strategies seek to obtain higher-value products from domestic resources.
ECONOMIC PERSPECTIVE
- Import substitution can improve the trade balance, but projects are capital intensive and vulnerable to future carbon constraints.
GEOGRAPHICAL PERSPECTIVE
- Coal reserves are concentrated in eastern and central India. Plant location depends on coal, water, transport and downstream industrial demand.
- ENVIRONMENTAL /
SOCIAL PERSPECTIVE
- Mining, water use and carbon emissions are major environmental concerns. Lifecycle accounting is essential.