Mumbai, May 8 (Agency) Union Minister for Coal Pralhad Joshi on Friday said his ministry has approached the Finance Ministry to provide viability gap funding for the coal conversion projects to encourage private participation. In February this year, the coal ministry announced four projects for conversion of coal to clean energy with private sector capital investment of Rs 30130 crore to achieve the target of 100 million tonne (MT) coal gasification by 2030. Speaking at an investors’ meet in Mumbai, Joshi said, “To meet the energy needs of the country we will need coal. However, instead of burning coal, conversion of coal or coal gasification is a cleaner option as it facilitates utilization of the chemical properties of coal.” He said that out the four projects, bids for three projects have been invited.
“We are seeking viability gap funding for these projects to support the private sector. We have approached the Ministry of Finance for this. We are ready to extend all support to the private sector to work with us to achieve the target of 100 MT coal gasification by 2030,” Joshi added. He further said that his ministry has also allowed a concession of 50 per cent in revenue share for coal gasification to encourage private participation. Under this, if the successful bidder consumes the coal produced either in its own plants 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 per cent 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 of 50 per cent, Joshi explained. The Minister also pitched for options like manufacturing hydrogen from coal to help India become energy independent.