Archive · 13 Sep 2025
Coal Ministry Reviews Funding Cap for Gasification Projects
The Coal Ministry is looking at how it helps fund projects that turn coal into gas.
They are considering changing a rule about how much money the government gives to these projects.
Currently, the government gives up to 15% of the project cost, with a maximum amount.
The Ministry is also talking to the Ministry of Petroleum and Natural Gas about using the by-products of coal gasification, like ethanol and methanol.
The goal is to make a lot of gas from coal by 2030.
The Ministry believes this is a good business opportunity since India has a lot of coal.
The Coal Ministry is reviewing the 15% viability gap funding (VGF) cap.
VGF provides financial support to coal gasification projects.
The Ministry aims to achieve 100 million tonnes of coal gasification by 2030.
Discussions are ongoing with the Ministry of Petroleum and Natural Gas on by-product utilization.
Roadshows are planned in various cities and international locations.
- Who
- Coal Ministry
- What
- Reviewing viability gap funding (VGF) for coal gasification projects
- When
- Announced on Friday
- Where
- Mumbai (roadshow)
- Why
- To potentially revise the 15% cap on VGF and promote coal gasification
- Ministry Action
- Reviewing the 15% VGF cap for coal gasification projects
- VGF Scheme Goal
- Achieve 100 million tonnes of coal gasification by 2030
- Total Funding
- Rs 8,500 crore for gasification scheme
- Roadshows Planned
- Hyderabad and international locations
- Government Projects Funding
- Up to Rs 1,350 crore, or 15% of project cost, whichever is lower