Delhi: The Ministry of Coal has clarified that reports claiming the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has received no applications are premature and do not reflect the actual status of the scheme.
The Ministry said the first application window remains open until September 7, 2026, and therefore the number of applications received in the first round cannot be assessed conclusively at this stage. It also confirmed that Talcher Fertilisers Limited (TFL) and NTPC Limited have already submitted their applications through the online portal.
₹37,500 Crore Coal Gasification Scheme Approved in May
The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on May 13, 2026, with a total financial outlay of ₹37,500 crore.
The scheme aims to accelerate the development of coal and lignite gasification in India and promote the conversion of domestic coal and lignite into higher-value products.
These include:
- Syngas
- Methanol
- Ammonia
- Urea
By promoting greater use of domestic coal and lignite for value-added products, the scheme seeks to reduce dependence on imported feedstock and strengthen India’s energy and economic security.
Ministry Conducted Roadshows to Attract Industry Participation
Following Cabinet approval, the Ministry of Coal undertook extensive outreach and stakeholder engagement to encourage participation from potential project developers.
Roadshows were organised at:
- New Delhi: May 28, 2026
- Hyderabad: June 11, 2026
- Mumbai: June 18, 2026
The events brought together representatives from State Governments, public and private sector companies, technology providers, investors, financial institutions and other stakeholders.
The Union Minister of Coal and Mines, along with senior Ministry officials, also participated in these events, highlighting the government’s focus on promoting industry participation.
RFP Issued on July 7, Application Portal Launched
The Request for Proposal (RFP) under the scheme was issued on July 7, 2026, after which the online application portal was launched.
To provide prospective applicants with greater clarity regarding the scheme, eligibility criteria and application process, the Ministry organised a pre-application conference on July 20, 2026.
During the conference, potential applicants raised queries and sought clarifications on various provisions and eligibility requirements.
The Ministry has continued discussions with interested stakeholders to facilitate participation in the scheme.
First Application Deadline Set for September 7
The Ministry said the first-round application deadline is September 7, 2026.
Therefore, any assessment of the final number of applications at this stage would be premature.
The Ministry has specifically clarified that:
- The first application window is still open.
- TFL and NTPC have already submitted applications.
- Other prospective applicants are at different stages of project preparation.
- Additional applications may be submitted before the deadline.
The Ministry said the assertion that the scheme has received “no takers” is factually incorrect.
Large-Scale Project Preparation Required
The Ministry also pointed out that coal and lignite gasification projects involve substantial preparation because of their scale and complexity.
Prospective applicants are required to undertake work including:
- Preparation of Pre-Feasibility Reports
- Assessment of available technology options
- Identification of coal, lignite and other feedstock arrangements
- Evaluation of project economics
- Preparation of detailed project proposals
The Ministry expects more applicants to finalise their proposals as the September 7 deadline approaches.
Rolling Application Rounds to Give More Opportunities
The scheme has been designed with a rolling-round application mechanism to allow companies additional opportunities to participate.
After one application round closes, the next round will open from the following day and remain open for two months.
This mechanism is intended to ensure that companies requiring additional time for project preparation are not excluded because they could not participate in an earlier round.
The Ministry said the rolling-round structure takes into account the substantial preparation and investment requirements associated with large-scale coal and lignite gasification projects.
Scheme Expected to Attract Up to ₹3 Lakh Crore Investment
The Ministry expects the scheme to generate significant investments and employment opportunities across the coal gasification sector.
According to the Ministry, the initiative is expected to:
- Catalyse investments of approximately ₹2.5 lakh crore to ₹3 lakh crore
- Support nearly 25 projects
- Generate around 50,000 direct and indirect employment opportunities
- Contribute to the target of achieving 100 million tonnes of coal gasification capacity by 2030
The scheme is therefore positioned as a major component of the government’s strategy to expand domestic coal gasification and develop value-added products from domestic resources.
Ministry Says Scheme Is Still at Early Implementation Stage
The Ministry of Coal reiterated that the scheme is currently at an early stage of implementation and that the first application window has not yet closed.
It said participation should be assessed after completion of the prescribed application process and subsequent application rounds, rather than through interim assessments.
The Ministry remains confident of sustained industry participation and expects the scheme to provide a major boost to the development of coal and lignite gasification in India.
