Government Launches ₹37,500 Crore Scheme for Coal Gasification

The Ministry of Coal has successfully hosted the Pre-Application Conference for its ambitious ₹37,500 Crore Scheme aimed at promoting surface coal and lignite gasification projects. Chaired by Shri Sanoj Kumar Jha, Additional Secretary at the Ministry, the conference saw robust participation from public sector enterprises, private companies, technology providers, and potential applicants. This turnout reflects significant industry enthusiasm for the government’s flagship initiative to harness domestic coal in a cleaner and more value-driven manner.
Details of the Scheme Revealed
During the conference, detailed explanations were provided regarding the Scheme Guidelines and the Request for Proposal (RFP). Key topics included eligibility criteria, evaluation processes, financial incentives, and the application procedure. The Ministry also addressed questions and concerns raised by the attendees, ensuring clarity on the scheme’s objectives and requirements.
Investment and Employment Opportunities
Approved by the Union Cabinet on May 13, 2026, the ₹37,500 crore Scheme is designed to accelerate the development of surface coal and lignite gasification projects. Its goal is to facilitate the production of high-value downstream products, including synthetic natural gas, ammonia, methanol, Direct Reduced Iron (DRI), synthetic fuels, and various chemicals. This initiative is projected to attract investments ranging from ₹2.5 to ₹3 lakh crore and leverage approximately 75 million tonnes of coal annually.
Impact on National Energy Security
Furthermore, the scheme is anticipated to create around 50,000 job opportunities while significantly reducing India’s reliance on imported energy and chemical products. This strategic move is expected to enhance the country’s energy security and promote sustainable industrial practices. Interested entities are encouraged to submit their applications by the deadline of September 7, 2026, ensuring they take part in this transformative opportunity.
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