Coal Gasification Scheme: Ministry of Coal Issues LoA for ₹793 Crore Project in Maharashtra

New Delhi: The Ministry of Coal has taken a significant step in advancing India’s coal gasification programme by issuing a Letter of Award (LoA) under Category III of Round II of the ₹8,500 crore Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects.

The LoA was awarded by Shri Sanoj Kumar Jha, Additional Secretary, Ministry of Coal, to Kartikay Vayunandana Private Limited for establishing a coal-to-acetic acid small-scale plant in Gadchiroli, Maharashtra. The project involves an investment of approximately ₹793 crore and will have an installed capacity of 75,900 tonnes per annum of acetic acid.

This initiative represents a major milestone in promoting value-added utilisation of domestic coal resources and strengthening India’s industrial self-reliance. The scheme aims to accelerate investment in coal gasification technologies and reduce dependence on imported chemicals.

Under Category III of the scheme, support is extended to demonstration projects and small-scale production units, offering financial assistance of up to ₹100 crore per project or 15% of capital expenditure, whichever is lower. This is designed to encourage innovation and faster adoption of coal gasification technologies.

The project is expected to boost domestic production of downstream chemicals, reduce import dependency, and contribute to the vision of Atmanirbhar Bharat, while promoting a more efficient and sustainable use of coal resources.