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Coal India Signs Agreements with 3 PSUs for Four Gasification Projects

State-owned Coal India Ltd has signed agreements with three public sector undertakings -- Bharat Heavy Electricals Ltd (BHEL), Indian Oil Corporation Ltd, and GAIL (India) Ltd -- to set up four surface gasification projects.

 

It aims to gasify 100 million tonnes (mt) of coal into syngas for use in downstream production of value added chemicals in the next eight years in order to reduce import of crude oil which is otherwise used to produce syngas.

 

Syngas is synthesis gas, a mixture of carbon monoxide, carbon dioxide, and hydrogen. The projects would reduce forex outgo and create around 23,000 jobs, the coal ministry said.

 

This gasification of 100 mt coal will happen in three phases.

 

In the first phase from 2020-2024, four mt will be gasified with an investment of Rs 200 billion. In the second phase from 2020-2026, six mt involving an investment of Rs 300 billion and 90 mt in the third phase from 2022-2030 at an investment of Rs 3600 billion.

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