The Union Cabinet on Wednesday approved coal gasification. This decision was taken in the morning meeting of the Cabinet Committee on Economic Affairs i.e. CCEA on 24th January. Besides, the cabinet has also given green signal to Visibility Gap Funding (VGF) worth about Rs 6000 crore. According to the news quoting sources, 50% of VGF will be given to private companies.
Cabinet approves coal gasification
CCEA approved coal gasification in the meeting. This matter was pending for a long time. Besides, exemption on equity investment for coal gasification has also been approved. According to the information received by Zee Business, VGF worth about Rs 6000 crore has also got approval from the Cabinet. In this, 50% of VGF will be given to private companies. That means around Rs 3000 crore will go to private companies for coal gasification. The remaining VGF will be given to government companies.
NLC India invited bids
According to information received by Zee Business from sources, coal gasification will be started soon. Neyveli Lignite had also invited bids for this. L&T has also been selected as partner. Because VGF was awaited. In such a situation, after the approval from the Cabinet, work on coal gasification will start within the next 2-3 months.
GST Council's decision will also be monitored
Let us tell you that coal gasification is a very different type of technology. Only selected countries are working on this. GIST has another demand regarding coal gasification. In such a situation, it is being estimated that a decision on this can be taken in the GST Council meeting to be held next month. At present, coal gasification has received approval from the cabinet.