Round 1 of Coal Gasification Scheme Concludes with Seven Applications
The Ministry of Coal has successfully concluded Round 1 of its ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, receiving seven applications from leading industrial houses and public sector undertakings. The overwhelming response, which includes multiple applications from major corporations, represents a significant validation of India's coal gasification initiative and demonstrates growing industry confidence in this technology as a pillar of energy security and import substitution.
Applicant Details and End Products
The applications received comprise three separate urea projects from Adani Enterprises Limited, along with single applications from NTPC Limited (Synthetic Natural Gas), Talcher Fertilisers Limited (Urea), Gallantt Ispat Limited (Direct Reduced Iron and Syngas), and Shyam Sel & Power Limited (Syngas). This diverse range of end products indicates the broad industrial applicability of coal gasification technology across multiple sectors including fertilizers, energy, and steel production.
Scheme Objectives and Financial Scope
The scheme was approved by the Union Cabinet chaired by Prime Minister Narendra Modi on May 13, 2026, with specific objectives to convert domestic coal and lignite into higher-value products including syngas, methanol, ammonia, urea, and hydrogen. The program aims to address India's significant import burden, which totaled approximately ₹2.77 lakh crore for LNG, urea, ammonia, and methanol during FY 2024-25. The scheme targets achieving 100 million tonnes of coal gasification capacity by 2030, with 75 million tonnes expected to be developed under this specific initiative. It is projected to catalyze investments estimated at ₹2.5-3 lakh crore while generating substantial direct and indirect employment opportunities across the value chain.
Implementation Timeline and Future Rounds
The Ministry has announced the opening of Round 2 of the scheme starting September 8, 2026, with application windows scheduled to open at two-month intervals thereafter. Several prospective applicants are reportedly at advanced stages of project preparation and are expected to submit proposals in forthcoming rounds. The current applications will undergo detailed evaluation according to scheme guidelines and the Request for Proposal issued on July 7, 2026. The scheme builds upon the earlier ₹8,500 crore Financial Incentive Scheme approved in January 2024, under which eight gasification projects are already under implementation.