The scheme aims to accelerate coal gasification and advance the National Coal Gasification Mission. 

About FIS

• Launched: 2024. 
• Outlay: ₹8,500 crore. 
• Implementation: Ministry of Coal.
• Aim: Encourage both private and public sector to undertake coal gasification projects. 
• Three Categories: Selected applicants under Category I and III were announced earlier. 

About Coal Gasification

• Meaning: It is a technological process that converts any carbonaceous (carbon-based) raw material like coal into fuel gas or synthesis gas (syngas). 
  • Syngas is an intermediate in the production of synthetic natural gas, composed mainly of carbon monoxide (CO) and hydrogen (H2). 
• Process: Occurs in a gasifier (a high temperature/pressure vessel) where oxygen and steam come in direct contact with the coal to produce syngas.  

Significance of Coal Gasification

• Cleaner Form of Energy: Coal is converted into a gaseous fuel which is easy to handle and is clean.
• Use in Chemical and Petrochemical Industry: Can be used to make methanol, ethanol, olefins, etc. 
• Use of Syngas: It has variety of uses namely, manufacturing of ammonia, hydrogen, substitute to natural gas, reduction gas in steel industry, production of electric power, etc. 
• Significance for India: Utilize India’s abundant coal reserves (378.21billion tonnes, National Coal Inventory, 2023), reduce import dependence for oil and gas needs), etc.