Why in news?

NLC India Ltd., (NLCIL), a Navaratna Public Sector Undertaking (PSU) under the Ministry of Coal has planned to set up a methanol project using lignite with an investment of ₹4,400 crore in Neyveli.

Highlights

• Project will have a capacity of 1,200 tonnes per day
• The project, is said to be the first of its kind in the State, will have a capacity of 1,200 tonnes per day (0.40 million tonnes per annum) and is expected to be commissioned in 2027.
• NLCIL has requested the Union Ministry of Coal to include the project in the Centre’s proposed production-linked incentive scheme, under which a financial incentive would be provided for every unit of production sold.
• The PSU has appointed Engineers India Limited (EIL), a Navaratna PSU functioning under the Ministry of Petroleum and Natural Gas, as the project management consultant.

• NITI Aayog would be monitoring the implementation of the project.