Thermax, an engineering solutions conglomerate that focuses on energy transition, sees future potential for tie-ups in the eastern part of the country for commercial-scale coal gasification.

The central government has announced a National Coal Gasification and liquefaction of 100 MT of coal by 2030 in a bid to reduce imports of natural gas, methanol and ammonia.

With the prospects of viability gap funding worth Rs 8,500 crore, the government hopes to attract private sector players in addition to the public sector companies for coal gasification projects.

In January, the Union cabinet had approved a scheme where the central government is expected to provide viability gap funding of around 15 per cent of the capital expenditure towards these projects.

“We are actively working on how to make coal cleaner. This can be made by using coal gasification and by FGD (flue-gas desulferisation) and we are already present in this segment,” said Thermax MD and CEO Ashish Bhandari.

He added that the company is in discussion with Coal India and other players for coal gasification having already implemented a pilot project at its plant in Pune. The company could partner both public sector and private sector players, including steel companies for such projects.

Bhandari said the industry expects greater clarity soon from the government regarding funding and execution details for such projects. He added that as coal gasification picks up, the company could explore prospects of making further investments in the east, including in Bengal.

With an order balance of over Rs 10,000 crore, the company currently has manufacturing presence in 14 locations across India, Europe and Southeast Asia.

On Friday, Thermax held a roadshow in Calcutta showcasing cleaner energy technologies. In the east, the company is working in sectors like steel, iron ore, rice processing.