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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