Centre’s Rs 37,500 crore coal gasification scheme draws 7 first-round applications

New Delhi [India], September 8: The Centre’s Rs 37,500 crore scheme to promote surface coal and lignite gasification has received seven applications in its first round, including three from Adani Enterprises, as the government said the response has strengthened its push to expand domestic coal gasification.

The applications were submitted by Adani Enterprises, Gallantt Ispat, NTPC, Shyam Sel & Power and Talcher Fertilisers, with proposals covering urea, direct reduced iron, syngas and synthetic natural gas, the Ministry of Coal said on Tuesday.

Adani Enterprises has submitted three separate applications for urea projects, while Gallantt Ispat has applied for a direct reduced iron and syngas project. NTPC has proposed a synthetic natural gas project, Shyam Sel & Power has applied for a syngas project and Talcher Fertilisers for a urea project.

The first round of the scheme closed after the application deadline, following the issuance of the Request for Proposal on July 7, 2026. The ministry said the projects will now undergo detailed evaluation according to the scheme guidelines and the RFP.

“Seven applications in the very first round, including from some of India’s largest industrial houses and public sector undertakings, are a clear vote of confidence in the scheme and in India’s coal gasification mission,” a senior Ministry of Coal official said.

The scheme was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of Rs 37,500 crore. It aims to convert domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, urea and hydrogen, while reducing dependence on imports of LNG, urea, ammonia and methanol.

The government has set an objective of achieving 100 million tonnes of coal gasification capacity by 2030, including 75 million tonnes under the scheme. It expects the initiative to catalyse investments of Rs 2.5-3 lakh crore and create employment opportunities across the value chain.

The ministry said the scheme builds on an earlier Rs 8,500 crore scheme approved in January 2024, under which eight gasification projects are currently under implementation.

Round 2 of the scheme opens on September 8, with application windows to continue at two-month intervals. The ministry said several prospective applicants are at advanced stages of project preparation and are expected to submit proposals in forthcoming rounds.

Source: ANI News

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