Massive Industry Support for India’s Coal Gasification Initiative
The first round of the ₹37,500 crore Scheme for Promotion of Surface Coal and Lignite Gasification Projects has concluded with a remarkable response from the industry. Seven applications were submitted by prominent corporate entities and leading public sector companies, affirming the Ministry of Coal’s belief in the scheme. This enthusiasm reflects a growing confidence in coal gasification as a vital component of India’s energy security and a driver for domestic industrial growth.
Strong Applications Received
The applications from distinguished firms include three from Adani Enterprises focused on producing urea, along with submissions from Gallantt Ispat Limited, NTPC Limited, Shyam Sel & Power Limited, and Talcher Fertilisers Limited. Each of these projects aims to create products ranging from direct reduced iron and syngas to synthetic natural gas and urea. The diverse end products could significantly influence the future energy landscape.
Government’s Response
A senior official from the Ministry of Coal expressed confidence in the program, stating, “When we said reports of ‘no takers’ were premature, we were confident that industry would respond—and it has, decisively.” The official underscored the serious engagement from the industry evidenced by the seven submissions and highlighted the importance of this response in strengthening India’s coal gasification mission.
About the Scheme
The Scheme for Promotion of Surface Coal and Lignite Gasification Projects was approved by the Union Cabinet led by Prime Minister Shri Narendra Modi on May 13, 2026. Its objectives include promoting the transformation of domestic coal and lignite into valuable products such as syn gas, methanol, ammonia, urea, and hydrogen. Furthermore, the scheme aims to reduce India’s reliance on imports, which reached about ₹2.77 lakh crore for LNG, urea, ammonia, and methanol in the 2024-25 fiscal year.
Through this initiative, the government aspires to establish 100 million tonnes of coal gasification capacity by 2030, with a target of developing 75 million tonnes under this scheme. This effort is expected to attract investments ranging from ₹2.5 to 3 lakh crore and create numerous employment opportunities within the sector.
Looking Ahead
With the applications from Round 1 now set for thorough evaluation under the established guidelines, the Ministry has announced the launch of Round 2, which opens on September 8, 2026. This continuous application process will allow eligible entities regular chances to engage in the program. Anticipation is building among several potential applicants who are in advanced preparations to submit their proposals in the upcoming rounds.
The Ministry expresses gratitude to all applicants for their participation and confidence in the scheme. Its commitment to advancing coal gasification technologies in India remains steadfast, aiming to bolster energy security, reduce imports, and elevate the country’s status as a leader in clean coal technologies.
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