By Enersider Desk | New Delhi
The Ministry of Coal has issued a Letter of Award (LoA) under Category III of Round II of the ₹8,500 crore Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects, according to a PIB release dated April 29, 2026.
Image Credits: PIB
Sanoj Kumar Jha, Additional Secretary, Ministry of Coal, awarded the LoA to Kartikay Vayunandana Private Limited for setting up a coal-to-acetic acid small-scale plant in Gadchiroli, Maharashtra. The project has an investment of ₹793 crore and will produce acetic acid with an installed capacity of 75,900 TPA.
The scheme continues to gain momentum, with seven projects already under implementation in the first round. Requests for Proposals (RFPs) for Round II were invited under Category II and Category III, encouraging participation in coal/lignite gasification projects.
Category III supports demonstration projects and small-scale, product-based plants, with financial assistance of up to ₹100 crore per project or 15% of the capital expenditure, whichever is lower.
The project is expected to boost indigenous production of downstream chemicals, reduce import dependence, and strengthen India’s journey towards Atmanirbhar Bharat.
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