Coal India flags gasification scheme rules may advantage private players

Coal India Limited (CIL) has flagged potential structural disadvantages in the rules governing a new coal gasification initiative, warning that the framework could tilt the competitive landscape in favour of private sector players.

The state-owned coal producer has specifically objected to two key provisions in the proposed scheme. The first concerns a 60-day bidding window, which CIL contends is insufficient given the scale and complexity of gasification projects. The second issue relates to the exclusion of captive power plants from eligible project costs, a restriction that CIL argues would raise its financial burden compared to private competitors.

CIL's concerns underscore a broader tension in India's energy sector regarding how policy frameworks are designed to accommodate both state-owned enterprises and private players. The miner's objections suggest that without amendments to these provisions, CIL may face higher operational costs and tighter timelines than private competitors operating under the same scheme.

The gasification initiative is part of India's broader strategy to diversify coal usage and reduce dependence on traditional thermal power generation. How regulators address CIL's concerns could significantly influence the scheme's competitiveness and the degree to which state and private players can participate on equitable terms.