New Delhi, Dec 19 (PTI) In a bid to lower crude oilimport bill, the government will promote coal gasification toconvert high ash coal into methanol that can be used ascooking gas and transportation fuels, Niti Aayog member V KSaraswat said today.
He also said that methanol is a good substitute fortransportation fuels and cooking fuel and there is a merit inIndia also looking at methanol economy.
"We can reduce high crude oil import bill, which ispegged at Rs 6 lakh crore per annum by producing methanol fromhigh ash coal.
"...In the rural areas, there are a number of people whostill use cow dung, so we want to give methanol stove to them.
Methanol gas is always cheap, safe and pollution free," hetold reporters here.
The former Defence Research and Development Organisation(DRDO) chief said the government has proposed using methanolfuels powered boats in inland waterways.
Saraswat also pitched for setting up of Rs 5,000 croreMethanol Economy Fund.
He said that the world's largest coal miner, Coal IndiaLtd (CIL), will set up a coal-based methanol plant in WestBengal.
Saraswat, who is also chairman of Methanol Committee, isin talks with companies like NTPC and Oil India to encouragemethanol economy.
According to the latest estimate, methanol productioncould cut India's huge crude oil imports bill, which is peggedat Rs 6 lakh crore per annum.
Methanol is a clear and colourless liquid produced fromnatural gas, coal and wide range of renewable feedstocks. Alsoknown as wood alcohol, methanol is naturally occurring andbiodegradable.
India has already introduced blending of petrol withethanol.
According to the Methanol Institute, USA -- an industryconsortium -- China is using 15-20 per cent of its fuel mixedwith methanol. PTI BKSMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.