Ministry of Coal announced applicants under Category-II of the Financial Incentive Scheme (FIS) | Current Affairs | Vision IAS
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Ministry of Coal announced applicants under Category-II of the Financial Incentive Scheme (FIS)

Posted 06 Feb 2025

2 min read

The scheme aims to accelerate coal gasification and advance the National Coal Gasification Mission. 

About FIS

  • Launched: 2024. 
  • Outlay: ₹8,500 crore. 
  • Implementation: Ministry of Coal.
  • Aim: Encourage both private and public sector to undertake coal gasification projects. 
  • Three Categories: Selected applicants under Category I and III were announced earlier. 

About Coal Gasification

  • Meaning: It is a technological process that converts any carbonaceous (carbon-based) raw material like coal into fuel gas or synthesis gas (syngas). 
    • Syngas is an intermediate in the production of synthetic natural gas, composed mainly of carbon monoxide (CO) and hydrogen (H2). 
  • Process: Occurs in a gasifier (a high temperature/pressure vessel) where oxygen and steam come in direct contact with the coal to produce syngas.  

Significance of Coal Gasification

  • Cleaner Form of Energy: Coal is converted into a gaseous fuel which is easy to handle and is clean.
  • Use in Chemical and Petrochemical Industry: Can be used to make methanol, ethanol, olefins, etc. 
  • Use of Syngas: It has variety of uses namely, manufacturing of ammonia, hydrogen, substitute to natural gas, reduction gas in steel industry, production of electric power, etc. 
  • Significance for India: Utilize India’s abundant coal reserves (378.21billion tonnes, National Coal Inventory, 2023), reduce import dependence for oil and gas needs), etc.

About National Coal Gasification Mission

  • Aim: Achieving 100 MT coal gasification by 2030. 
  • Implementation: Three phases (I- setting up pilot projects, II- Upscaling gasification efforts through Coal India Limited, III- Gasification of 90MT coal after technology advancement in phase II). 
  • Tags :
  • National Coal Gasification Mission
  • Coal Gasification
  • Syngas
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