The government also intends to work more closely in the area of coal gasification, as it is on a high-priority list for energy transition.
The meeting, organised on Monday in Nodia, provided a platform for discussions, clarifications, collaboration opportunities, and the dissemination of essential project information.
Coal India has announced the setting up of coal gasification plants to achieve the target of gasification of 100 MT of coal by 2030.
The Ministry has sought feedback until March 20, 2024.
Available land near coal mines under the Ministry of Coal can be offered at competitive and concessional price for setting up coal gasification units, M Nagaraju, additional secretary and nominated authority, Ministry of coal said
Coal India will supply coal at notified prices and with production ramping up, it is estimated that imports worth Rs 1.3 lakh crore can be substituted with domestic production, Union minister Pralhad Joshi said on January 24.
Rs 6,000 crore in VGF will be provided for coal gasification to two projects of PSUs, four projects from the private sector and five projects on pilot basis, Amrit Lal Meena, coal secretary told Moneycontrol.
The govt will reimburse GST on cost of coal, offer 10% capital subsidy on setting up coal gasification plants, and assure coal supply at a notified price for 15 years.
This cleaner and more sustainable use of coal will also help reduce the import bill, as also lead to the direct and indirect employment of more than 21,000 people.
The plan will reduce dependence on urea imports, currently pegged at an annual 12 lakh metric tonnes, and create jobs in Bihar, Odisha and Jharkhand.
"The gas that we are producing is about 225 thousand cubic metres per hour for which we set up this gas-based coal generation plant... We have 75-90 thousand cubic metres of gas we can spare for setting up an ammonia or urea plant. So, it is very much on the cards," JSPL MD and CEO Ravi Uppal told PTI in an interview.
Once the projects are successful, government will push for commercial use of technology for utilisation of country's huge coal reserves, Coal Secretary Susheel Kumar said.
Government will soon exploit economically unviable coal mines for gasification to produce cheaper urea to cut down on huge Rs 55,000 crore annual subsidy on the fertiliser, Union Minister Nitin Gadkari today said.
As part of its policy for the development of coal gasification, the government has set up an inter-ministerial panel for identifying coal and lignite mines to be put up for auction or allotment.
In an interview to CNBC-TV18, RG Rajan, Chairman and Managing Director, RCF spoke about the memorandum of understanding of Talcher unit