Coal India inks MoUs for Rs 35K cr large scale coal-to-chemical projects
NW DELHI, Oct 12 (The CONNECT) - India is likely to become Aatmanirbhar in thermal coal production in the next few months, Coal and Mines Minister Pralhad Joshi today said.
As much as 40 million ton of coal stock will be available with thermal power plants by March next year and the stock with thermal plants is 24 million ton now, he said addressing a function organized by Coal India Ltd., to sign MoUs with five leading PSUs for four large scale coal-to-chemical projects.
CIL signed three separate Memorandums of Understanding (MoU), one each, with three major PSUs of the country Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL) and GAIL (India) Limited. In addition, NLC India Limited (NLCIL) is signing MoU with BHEL.
The surface coal gasification (SCG) projects are planned to be set up in West Bengal, Odisha, Chattisgarh, Maharashtra and Tamil Nadu at an aggregated estimated cost of Rs.35,000 crores.
Through SCG route, coal is converted into syngas. This can be subsequently processed for downstream production of value-added chemicals which are otherwise produced through imported natural gas or crude oil at enormous cost.
As the country’s four major PSUs huddle together, the move is aimed at reduced forex outgo, promoting self-reliance and capitalization of indigenous resources. Another upside will be employment generation with direct employment of around 1200 personnel and indirect employment to the tune of over 20,000 persons, a Coal Ministry statement said.