Coal ministry awards project under ₹8500 crore gasification scheme to boost value-added coal use
Letter of award issued for ₹793 crore coal-to-acetic acid plant in Maharashtra; push to reduce imports and strengthen domestic production
The letter of award was presented by Additional Secretary Sanoj Kumar Jha to Kartikay Vayunandana in New Delhi on Wednesday.
New Delhi: The Ministry of Coal has issued a letter of award under Category III of Round II of the ₹8,500 crore financial incentive scheme for promotion of coal and lignite gasification projects, marking a key step in advancing India’s coal gasification mission.
The award has been granted to Kartikay Vayunandana Private Limited for setting up a coal-to-acetic acid plant in Gadchiroli, Maharashtra, with an investment of ₹793 crore. The project will have an installed capacity of 75,900 tonnes per annum and is aimed at enabling value-added utilisation of domestic coal.
The letter of award was presented by Additional Secretary Sanoj Kumar Jha to Kartikay Vayunandana in New Delhi on Wednesday.
The scheme is gaining momentum, with seven projects already under implementation from the first round. Under Round II, requests for proposals were invited under Category II and Category III to encourage broader participation in coal and lignite gasification initiatives.
Category III supports demonstration and small-scale product-based projects, offering financial assistance of up to ₹100 crore per project or 15% of capital expenditure, whichever is lower. The objective is to promote innovation and accelerate adoption of gasification technologies.
The ministry said the project is expected to boost domestic production of downstream chemicals, reduce import dependence and contribute to building a more sustainable industrial ecosystem through efficient use of coal resources.
