Coal news and updates

Coal gasification: Ministry proposes tax sops for syngas tech; 15% methanol blending with petrol

The mission document, reviewed by FE, pointed out that if levies such as GST compensation cess and additional duties on coal are removed, the tentative reduction on aggregate price of methanol may be in the range of Rs 1,450-1,650 per MT.

A blueprint for the ‘National Coal Gasification Mission’ prepared by the Union coal ministry has proposed 15% methanol-blending target with petrol to encourage investments in the sector. It also proposes massive tax waivers to incentivise coal gasification, which can lead to eco-friendly alternate utility of the fuel abundantly available in the country.

Prime Minister Narendra Modi had said in June 2020 that Rs 20,000 crore will be invested in coal gasification projects by 2030 to utilise 100 million tonne of coal.