Ministry of Coal Clarifies Status of ₹37,500 Crore Coal Gasification Scheme
The Ministry of Coal has issued a clarification refuting media reports suggesting that its Scheme for Promotion of Surface Coal/Lignite Gasification Projects has received no applications. The Ministry emphasizes that such reports are premature as the first application window remains open until 7 September 2026.
The scheme, approved by the Union Cabinet on 13 May 2026 with a total financial outlay of ₹37,500 crore, aims to accelerate the development of coal and lignite gasification in India. Its primary objectives include promoting the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, and urea, thereby reducing dependence on imported feedstock and strengthening India's energy and economic security.
Following cabinet approval, the Ministry conducted extensive stakeholder engagement through roadshows in New Delhi (28 May 2026), Hyderabad (11 June 2026), and Mumbai (18 June 2026). These events were attended by the Union Minister of Coal and Mines, senior ministry officials, state government representatives, public and private sector companies, technology providers, investors, and financial institutions.
The Request for Proposal was issued on 7 July 2026, followed by the launch of an online application portal. A pre-application conference was held on 20 July 2026 to address queries from prospective applicants regarding scheme provisions, eligibility requirements, and application processes.
The Ministry confirms that Talcher Fertilisers Limited (TFL) and NTPC Limited have already submitted applications through the online portal, contradicting claims of 'no takers.' Other prospective applicants are at various stages of project preparation and application finalization, requiring substantial preparatory work including Pre-Feasibility Reports, technology assessment, feedstock arrangements, and economic evaluations.
The scheme features a rolling application mechanism where subsequent rounds open immediately after the previous round closes, each remaining open for two months. This structure accommodates the significant preparation time required for large-scale gasification projects.
The initiative is expected to catalyze investments of approximately ₹2.5-3 lakh crore across nearly 25 projects, generate around 50,000 direct and indirect employment opportunities, and contribute significantly toward the government's target of achieving 100 million tonnes of coal gasification capacity by 2030.