On January 24, 2024, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi approved the following schemes and incentives:
i.Approved the Rs 8,500 crore scheme for the promotion of Coal/Lignite Gasification Projects.
ii.Passed the Resolution on Pran Pratishtha at Shri Ram Temple, Ayodhya Dham
iii.Approved signing of a Memorandum of Understanding (MoU) between India and Oman on cooperation in the field of Information Technology(IT).
iv.Approved the protocol to establish a Joint Economic and Trade Committee (JETCO) between India and the Dominican Republic.
Cabinet Approves Scheme for Coal Gasification Projects
The Cabinet committee chaired by PM Modi approved a scheme for the promotion of Coal/Lignite Gasification Projects of Government PSUs (Public Sector Undertakings) and Private Sector.
Financial outlay:
A total outlay of Rs 8,500 crore will be provided as financial assistance for coal gasification projects under 3 categories.
i.Category I: Rs 4050 crore (provisioned for Government PSUs)
- Under this up to 3 projects will be supported with a grant of Rs 1350 crore or 15% of capex(Capital Expenditure), whichever is lower
ii.Category II: Rs 3850 crore (provisioned for the private sector & Government PSUs)
- Under this, At least one project will be bid out on a tariff-based bidding process and its criteria will be designed in consultation with NITI Aayog(National Institution for Transforming India).
- A grant of Rs 1000 crore or 15% of capex, whichever is lower provided for each project.
iii.Category III: Rs 600 crore (provisioned for demonstration Projects (indigenous technology) and/or small-scale product-based Gasification Plants)
- under this, a grant of Rs 100 crore or 15% of capex, whichever is lower, will be given to the selected entity, with a minimum Capex of Rs 100 Crore and minimum production of 1500 Nm3/hr Syn gas(Normal Cubic Meter/hour synthesis Gas).
Points to note:
i.The selection of entities under categories II and III will be carried out through a competitive and transparent bidding process.
ii.The grant will be paid to the selected entity in two equal instalments
iii.EGoS (Empowered Group of Secretaries) chaired by Secretary of the Ministry of Coal (Amrit Lal Meena – current Secretary(Coal)) will be fully empowered to make any changes required in the modalities of the scheme subject to the condition that overall financial outlay remains within Rs.8,500 crore.
What is Gasification?
Gasification is a technological process that can convert any carbon-based raw material such as coal into fuel gas, also known as synthesis gas (syngas), and is considered a cleaner option as compared to burning coal and has diversified the use of coal in other forms of energy.
Cabinet Approves MoU Between India and Oman on Cooperation in the Field of IT
The Union Cabinet chaired by PM Modi was apprised of an MoU signed on 15th December 2023, between the Ministry of Electronics and Information Technology(MeitY) of the Republic of India and the Ministry of Transport, Communications and Information Technology of the Sultanate of Oman on cooperation in the field of IT.
- The MoU will remain in force for 3 years with effect from the date of signing.
About the MoU:
i.The MoU aims to promote cooperation between India and Oman through mutual support, sharing of technologies, information and investments in the field of IT.
ii.This will also enhance the G2G (Government to Government) and B2B (Business to Business) bilateral cooperation in the IT sector.
Note: This is in line with MeitY’s mandate to promote cooperation in information and Communications Technology(ICT) through bilateral and regional frameworks of cooperation.
Cabinet Approves Protocol to Set up JETCO Between India & Dominican Republic
The Union Cabinet chaired by PM Modi approved the proposal of the signing of a protocol for the establishment of a Joint Economic and Trade Committee (JETCO) between the Department of Commerce, the Ministry of Commerce and Industry(MoCI) of the Republic of India, and the Ministry of Foreign Affairs of the Dominican Republic.
About JETCO:
i.JETCO will become the first bilateral institutional mechanism between India and the Dominican Republic on trade and commerce.
ii.This will strengthen the economic relationship between India and the Dominican Republic.
iii.This will offer a platform to discuss, and exchange information, knowledge and ideas to facilitate trade and industry.
iv.This will also facilitate the trade of goods and services and boost employment opportunities for professionals in both countries.
v.This will address the challenges in exports of Indian products and boost the export of pharmaceuticals, automobiles and engineering goods manufactured in India.
Points to note:
i.India imports gold from the Dominican Republic and exports pharmaceuticals, marine products, motor vehicles, two and three-wheelers, etc. to them.
ii.This protocol will open access to the Latin American and Caribbean markets.
Cabinet Resolution on Pran Pratishtha at Shri Ram Temple, Ayodhya Dham
Union Cabinet passed a resolution on Pran Pratishtha of Shri Ram Temple at Ayodhya Dham on 24 January 2024 to appreciate PM Modi’s efforts towards the development of Shri Ram Temple and the observance of 11 days ritual before Pran Pratishtha.
Click here for the text of the resolution
CCEA Approved equity investment by CIL to set up Coal-to-SNG project & Coal-to-AN project
Cabinet Committee on Economic Affairs (CCEA) approved the equity investment by Coal India Limited (CIL)
- To set up of Coal-to-SNG (Synthetic Natural Gas) Project at Eastern Coalfields Limited (ECL) command area through a joint venture (JV) of CIL & Gail (India) Limited (GAIL).
- To set up a Coal-to-Ammonium Nitrate(AN) Project at Mahanadi Coalfields Limited (MCL) command area through a JV of CIL & Bharat Heavy Electricals Limited (BHEL).
Details of approved the proposal of equity investments:
Coal-to-SNG project :
i.The Coal-to-SNG project will be established at Sonepur Bazari Area of ECL in Burdwan district of West Bengal.
ii.CCEA has approved the investment of equity capital of Rs 1,997.08 Crore (±25%) by CIL considering a Debt-Equity Ratio of 70:30, and 51% Equity Investment in JV Company with an estimated Project Capex of Rs.13,052.81 Crore (accuracy of ±25%) for this project.
Coal-to-AN project:
i.The Coal-to-AN project will at established at Lakhanpur Area of MCL in Jharsuguda district of Odisha.
ii.CCEA has approved the investment of equity capital of Rs 1,802.56 Crore (± 25%) by CIL considering a Debt-Equity Ratio of 70:30, and 51% Equity Investment in JV Company with an estimated Project Capex of Rs.11,782.05 Crore (accuracy of ±25%) for this project.
Key Points:
i.CIL will set up two coal gasification plants as part of efforts to achieve the target of 100 MT coal gasification by 2030.
ii.CIL has signed MoU with GAIL and BHEL respectively to set up the above mentioned projects.
Points to note:
i.CIL is a Maharatna Central PSU(CPSU) under the Ministry of Coal. ECL and MCL are subsidiaries of CIL.
ii.GAIL, formerly known as Gas Authority Of India Ltd, is a Maharatna CPSU under the Ministry of Petroleum & Natural Gas.
iii.BHEL is a Maharatna CPSU under the Ministry of Heavy Industries.
About Oman:
Sultan of Oman– Haitham bin Tariq
Capital- Muscat
Currency- Omani Rial (OMR)
About Dominican Republic:
President- Luis Rodolfo Abinader Corona
Capital- Santo Domingo
Currency- Dominican peso
