Viability Gap Funding

Viability Gap Funding mind map
Recent News
India's Cabinet Approval
January 24, 2024
Rs 8,500 Crore Allocation
When
January 2024
Why
Energy Independence
Reduce Coal Imports
What
Fund Allocation
Rs 8,500 Crore
Target
Gasify 100 Million Tonnes
By 2030
Products
Methanol
Di-Methyl Ether
Ammonia
Ammonium Nitrate
Synthetic Natural Gas
Where
India
Who
Indian Government
Coal Gasification Industry
How
Financial Support
Capital Cost Coverage
Significance
Economic Savings
Reduce Import Bill
Industry Benefits
Diverse Products
Challenges
Environmental Impact
Coal-Based Emissions
Way Forward
Technological Advancements
Environmental Safeguards

The Indian government recently approved Viability Gap Funding (VGF) of Rs 8,500 crore for coal gasification, aiming to gasify 100 million tonnes of coal by 2030. This strategic move, announced on January 24, 2024, is part of India’s effort to achieve energy independence and reduce its coal import bill. The funding will support the production of various products, such as methanol, Di-Methyl Ether, ammonia, and Synthetic Natural Gas, benefiting multiple industries. While offering economic benefits, the initiative also faces environmental challenges due to coal-based emissions.