Coal Gasification Scheme Attracts Interest Amid Early Misreporting
The Ministry of Coal has clarified that claims regarding the absence of applications for the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects are unfounded and premature. These reports do not accurately reflect the current status of the application process for this significant initiative aimed at boosting the country’s energy security and reducing dependency on imported feedstock.
Approved by the Union Cabinet on May 13, 2026, the Scheme is designed to accelerate the development of coal and lignite gasification in India. It focuses on converting domestic resources into higher-value products such as syngas, methanol, ammonia, and urea. This move is expected to promote the utilization of indigenous coal and lignite, thereby enhancing India’s economic resilience.
Outreach and Application Process
Since the Scheme’s approval, the Ministry of Coal has actively engaged with potential project developers to encourage their participation. A series of roadshows were held across major cities, including New Delhi, Hyderabad, and Mumbai, which were attended by various stakeholders, including state representatives, public and private companies, technology providers, and financial institutions.
The Request for Proposal (RFP) was issued on July 7, 2026, followed by the launch of an online application portal. To further assist prospective applicants, a pre-application conference was conducted on July 20, where stakeholders could seek clarifications on eligibility and application procedures. The Ministry continues to interact with interested parties to foster engagement in the Scheme.
Application Submission and Expectations
The first application deadline is set for September 7, 2026, and the Ministry has indicated that it is premature to assess the number of applications until this window closes. Reports suggesting a lack of interest in the Scheme are therefore misleading. Notably, Talcher Fertilisers Limited (TFL) and NTPC Limited have already submitted their applications, reflecting a positive response from the industry.
Given the complexity of the projects, applicants are required to undertake significant preparatory work. As the deadline approaches, more applicants are expected to finalize and submit their proposals. To accommodate varying project preparation timelines, the application process is structured with rolling rounds; new application windows open the day after a previous one closes, remaining open for two months.
Anticipated Impact of the Scheme
The Ministry is optimistic about strong participation from the industry, estimating that the Scheme could catalyze investments ranging from ₹2.5 lakh crore to ₹3 lakh crore across approximately 25 projects. This could create around 50,000 direct and indirect job opportunities and contribute significantly to achieving the government’s target of 100 million tonnes of coal gasification capacity by 2030.
As the Scheme is still in its early implementation stage, the Ministry emphasizes that it is not accurate to state that there are “no takers” for the initiative. The assessment of the Scheme’s success should come after the application process concludes, reflecting the interest and engagement of potential developers in this crucial energy initiative.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
