Govt to soon auction blocks identified for coal gasification, says official

New Delhi: The government will soon auction coal blocks identified for coal gasification, a senior Coal Ministry official said on Friday, aligning with the plan to gasify 100 million tonnes of coal in the next five years.

“Very soon we would auction the coal blocks that have potential for coal gasification,” said Ru-pinder Brar, Additional Secretary, Coal, at a roadshow on coal gasification jointly organised by the ministry & Ficci. Coal gasification converts coal into syngas—a mix of carbon monoxide and hydrogen—by react-ing it with oxygen and steam at high temperatures. Syngas can be used to produce fertilizers, methanol, synthetic natural gas and other products, offering a cleaner and diversified alternative to conventional coal use.

The blocks will be sold under the commercial coal mining auction route, officials confirmed. Brar added that the government will soon invite proposals to allocate the remaining Rs 2,500 crore un-der its coal gasification financial incentive scheme. Of the Rs 8,500 crore approved last year, nearly Rs 6,000 crore has already been committed to PSUs and private firms for coal-to-SNG and coal-to-ammonium nitrate projects.