New Delhi: New Era Cleantech Solution Private Limited, Jindal Steel and Power Limited (JSPL) and Greta Energy Limited are the three companies that have been selected by the Ministry of Coal under Category-II of the Financial Incentive Scheme for coal gasification. According to sources who spoke to PSU Watch on the condition of anonymity, New Era Cleantech Solution has secured the highest funding from the government at Rs 1,000 crore, followed by Jindal Steel and Power Limited and Greta Energy Limited, which have secured Rs 500 crore each.
“The Ministry of Coal has announced the selected applicants under Category-II of the Financial Incentive Scheme, a major step in India’s ambitious coal gasification program. With an Rs 8,500 crore financial outlay, the scheme is designed to accelerate coal gasification, reduce carbon emissions, enhance energy security, and promote sustainable development,” said the Ministry of Coal in a statement on Tuesday.
Launched on January 24, 2024, the scheme encourages both private companies and government PSUs to undertake coal gasification projects. The Request for Proposals for Category-II was issued on May 15, 2024, and technical bids were opened on January 10, 2025. The Category II is for coal gasification projects being undertaken by both private sector and government PSUs. The projects qualifying for support under this category would receive a lump-sum financial incentive (in two equal instalments) of 15 percent of the capex or Rs 1,000 crore, whichever is lower, the Ministry of Coal had said earlier.
New Era Cleantech Solution Private Limited is setting up a 5-MTPA coal gasification project in Chandrapur, Maharashtra. It has also secured a funding of Rs 100 crore from the government earlier under Category-III, which includes demonstration projects and small-scale product-based plants. Under this category, New Era Cleantech’s coal-to-ethanol project which is coming up in Chandrapur, Maharashtra, at a cost of Rs 667 crore, has been shortlisted. It will utilise Carbon Capture, Utilisation, and Storage (CCUS) technology, capturing approximately 20,144 MT of CO2 annually while producing 18 KTPA of ethanol. This will be a demonstration project.
“This announcement marks a defining moment in India’s bold push for Atmanirbhar Bharat and clean energy transition. The Government of India’s decisive move on clean coal gasification strengthens energy security and industrial growth, aligning with global strategies, as echoed by US President Donald Trump at the World Economic Forum… New Era Cleantech Solution is honoured to be selected, reaffirming our leadership in gasification and decarbonisation technologies. This initiative strengthens stakeholder confidence, drives innovation, and accelerates India’s path to a cleaner, more self-reliant energy ecosystem,” Balasaheb Darade, Managing Director, New Era Cleantech, told Energy Watch.
Commenting on the financial incentive scheme, the Ministry of Coal said, “This initiative is an essential part of India’s strategy to achieve 100 million tonnes of coal gasification by 2030. The growing industry participation in this bidding process highlights the increasing momentum around coal gasification technologies, signalling a positive shift in India’s energy landscape and its transition from conventional coal use. The successful completion of this bidding process further reinforces the Ministry of Coal’s vision of a greener, more energy-efficient coal industry.”