Dentons Link Legal Advises on Landmark Rs 85 Billion Coal Gasification Project

Dentons Link Legal has played a pivotal role in advising the Ministry of Coal and SBI Capital Markets on India’s first-of-its-kind coal gasification project, valued at Rs 85 billion. The initiative aligns with the government’s ambitious Coal Gasification Financial Incentive Scheme, which aims to achieve 100 million tonnes of coal gasification by 2030.  

Strategic Vision and Policy Framework  
- The project is part of India’s broader push toward cleaner coal technologies, reducing carbon emissions while enhancing energy security  
- The Coal Gasification Financial Incentive Scheme, launched in January 2024, provides financial support to accelerate technological advancements in gasification  
- The initiative is expected to bolster domestic coal utilization, reducing dependency on imported natural gas and fostering sustainable development  

Project Structure and Key Participants  
- The Ministry of Coal executed agreements with selected bidders across three categories, including Coal India Limited, Jindal Steel and Power Limited, and New Era Cleantech Solution Pvt Ltd  
- Dentons Link Legal advised on structuring, bidding, and execution of transactional documents, ensuring compliance with regulatory frameworks  
- The firm’s legal expertise was instrumental in navigating negotiations between the government, applicants, and successful bidders  

Future Outlook and Industry Impact  
- The coal gasification projects are expected to drive innovation in clean energy, supporting India’s transition to a more sustainable industrial ecosystem  
- The initiative sets a precedent for future coal-based energy projects, reinforcing India’s commitment to balancing economic growth with environmental responsibility  
- Analysts anticipate that successful implementation will attract further investments in coal gasification technologies, strengthening India’s energy infrastructure  

Sources: Economic Times, Legal Era, Press Information Bureau.