New Delhi: The first round of the Centre’s Rs 37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has received seven project applications from five companies, the Ministry of Coal said on Tuesday.
The applicants include NTPC Limited, Adani Enterprises Limited, Gallantt Ispat Limited, Shyam Sel & Power Limited and Talcher Fertilisers Limited (TFL). The ministry described the response as an “overwhelming response from the industry” and said the applications reflect strong industry confidence in India’s coal gasification mission.
Five Companies Submit Seven Coal Gasification Projects
The five companies have submitted seven applications under the first round of the scheme.
The project proposals include:
- NTPC Limited: One project for production of synthetic natural gas (SNG).
- Adani Enterprises Limited: Three projects, all focused on urea production.
- Gallantt Ispat Limited: One project for production of direct reduced iron (DRI) and syngas.
- Shyam Sel & Power Limited: One project for production of syngas.
- Talcher Fertilisers Limited (TFL): One project focused on urea production.
The Round 1 applications will now undergo detailed evaluation in accordance with the scheme guidelines and the Request for Proposal (RFP).
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Ministry of Coal Calls Applications Strong Industry Response
Alok Kumar Singh, Advisor (Projects), Ministry of Coal, said the response demonstrated industry confidence in the scheme.
He said concerns about a lack of applicants were premature and described the seven applications received in the first round as a clear vote of confidence in the government’s coal gasification mission.
The ministry also noted that the applications include proposals from some of India’s major industrial groups as well as public sector undertakings.
Coal Gasification Projects Require Extensive Preparation
The Ministry of Coal said the RFP for the first round was issued on July 7.
Coal and lignite gasification projects require significant preparation before companies can submit bids. This includes:
- Pre-feasibility studies
- Technology assessments
- Detailed financial planning
- Other project preparation activities
The ministry said the seven applications demonstrate the seriousness with which industry has engaged with the scheme.
Rs 37,500 Crore Scheme Aims to Promote Coal Gasification
The Union Cabinet approved the Rs 37,500-crore scheme on May 13 to promote the conversion of domestic coal and lignite into higher-value products.
The scheme focuses on products such as:
- Syngas
- Methanol
- Ammonia
- Urea
- Hydrogen
The government aims to use coal gasification to reduce India’s dependence on imports of LNG, urea, ammonia and methanol.
According to the Ministry of Coal, imports of these products together accounted for approximately Rs 2.77 lakh crore during FY 2024-25.
Government Targets 100 MT Coal Gasification Capacity by 2030
The scheme is part of the government’s broader objective of achieving 100 million tonnes of coal gasification capacity by 2030.
Of this targeted capacity:
- 100 MT: National coal gasification capacity target by 2030.
- 75 MT: Capacity targeted to be developed under the Rs 37,500-crore scheme.
- Rs 2.5 lakh crore to Rs 3 lakh crore: Estimated investment expected to be catalysed by the scheme.
The initiative builds on the National Coal Gasification Mission and an earlier Rs 8,500-crore financial incentive scheme approved in January 2024.
Eight gasification projects are currently under implementation under the earlier scheme.
Round 2 of Coal Gasification Scheme Opens
The Ministry of Coal also announced the opening of Round 2 of the coal and lignite gasification scheme on Tuesday.
Under the RFP, application windows will open at two-month intervals.
The ministry said several prospective applicants are currently at advanced stages of project preparation and are expected to submit their proposals in the forthcoming rounds.
Focus on Energy Security and Import Substitution
The Ministry of Coal said it remains committed to accelerating the development of coal gasification technologies in India.
The scheme is aimed at:
- Strengthening India’s energy security.
- Promoting import substitution.
- Developing domestic coal gasification technologies.
- Supporting production of higher-value products from domestic coal and lignite.
- Positioning India as a global leader in clean coal technologies.
The ministry welcomed the participation of the applicants and their confidence in the scheme.
About NTPC Limited
NTPC Limited is India’s largest integrated power utility and a Maharatna Central Public Sector Enterprise under the Ministry of Power. The company is involved in power generation and has been expanding its presence across renewable energy and emerging energy technologies, including initiatives linked to coal gasification.
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