The Ministry of Coal has concluded Round 2 of its Scheme for Promotion of Surface Coal/Lignite Gasification Projects, which was approved by the Union Cabinet on 13th May 2026 with a total financial outlay of ₹37,500 crore. The scheme received two applications from NTPC Limited, both aimed at producing critical industrial products through coal gasification technology. The first application targets Urea production, while the second application focuses on producing Methanol and Dimethyl Ether (DME), demonstrating the potential for diversifying the utilization of India's indigenous coal resources.
Building on this progress, the Ministry has launched Round 3 of the scheme effective from 10th November 2026, with the submission deadline set for 11th January 2027. The successive rounds are designed to encourage wider industry participation, attract investments, and accelerate the adoption of coal gasification technologies across the country. This initiative supports the national target of achieving 100 million tonnes of coal gasification capacity by 2030, representing a significant step toward reducing import dependency for critical industrial products and enhancing domestic manufacturing capabilities.