Cabinet to consider sops to gasify coal

The union cabinet will soon consider the ₹6,000-crore incentive scheme for coal gasification projects. The cabinet note has been finalized and moved for approval, said two people in the know of the development.

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The government will provide incentives for gasification under three components—those that are led by public sector units, those sponsored by private sector companies and pilot projects. Under PSU-led gasification, a viability gap funding (VGF) of up to ₹1,000 crore or 10% of the expenditure for each project is likely to be provided.

For private sector projects, government support would be up to ₹600 crore or 15% of the overall expenditure per project. Support for five pilot projects for technology development would be ₹100 crore per project or up to 20% of the cost.

“The scheme has been finalized and the cabinet note has been moved. Everything is done; Cabinet may take it up for consideration anytime soon. The proposal also includes the reimbursement of GST on coal used for gasification," said one of the two people mentioned above.

GST reimbursement may be given for a period of 10 years.