The Coal Gasification Incentive Scheme is a strategic initiative by the Indian government aimed at encouraging and incentivizing coal gasification projects. This innovative process transforms coal into fuel gas, presenting a cleaner and more environmentally sustainable alternative to the direct combustion of coal.
The primary goal of the scheme is to promote the adoption of coal gasification technology and to significantly reduce the carbon emissions associated with traditional coal usage. By doing so, it aligns with India's environmental objectives and commitment to cleaner energy sources.
The scheme consists of three core components:
One of the notable features of the Coal Gasification Incentive Scheme is the reimbursement of the Goods and Services Tax (GST) on coal utilized for gasification. This incentive can be availed for a period of ten years, thereby enhancing the financial viability of such projects.
This initiative is part of India's larger strategy to minimize carbon emissions and transition towards cleaner energy solutions. As the reliance on coal for thermal power generation declines, primarily due to a shift towards renewable energy sources, the scheme seeks to explore alternative applications for coal, thereby promoting its sustainable use as an energy resource.
The Coal Gasification Incentive Scheme has received approval from the Expenditure Finance Committee (EFC), marking a significant step toward its implementation and the promotion of cleaner energy solutions in India.
Kutos : AI Assistant!
