Delhi: NTPC Limited has submitted two proposals to establish coal-based manufacturing projects for the production of urea, methanol and dimethyl ether (DME), giving a fresh boost to India’s coal gasification programme.
The proposals have been submitted under the Centre’s Rs 37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects. According to the Ministry of Coal, both applications received during the second round of the scheme were submitted by NTPC.
While one proposal focuses on urea production, the other envisages manufacturing methanol and dimethyl ether (DME). These products have significant applications in the fertiliser, chemical, industrial and energy sectors.
The development highlights NTPC’s participation in the government’s efforts to promote coal gasification and utilise domestic coal resources for producing value-added industrial commodities.
Coal Gasification Scheme: Third Round Opens, Applications Until January 11
The Ministry of Coal has opened the third round of applications under the coal gasification scheme from November 10, 2026. Eligible companies and entities can submit their proposals until January 11, 2027.
The latest round is expected to encourage wider participation from public- and private-sector companies, attract investments and support the development of coal and lignite gasification projects across the country.
The Union Cabinet approved the Rs 37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects on May 13, 2026. The scheme aims to accelerate the development of gasification projects and promote the use of domestic coal and lignite for manufacturing various industrial products.
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What Is Coal Gasification and Why Is It Important?
Coal gasification is a process through which coal is converted into synthesis gas, commonly known as syngas. This gas can be further processed to manufacture several products, including fertilisers, chemicals, fuels and other value-added commodities.
For India, the technology provides an opportunity to diversify coal utilisation beyond conventional power generation. It can also help develop domestic manufacturing capabilities for products that have significant import dependence.
Urea is an important agricultural input, while methanol and dimethyl ether have applications across the chemical, industrial and energy sectors.
The development of coal gasification projects could strengthen domestic supply chains, encourage industrial investment and create additional opportunities for utilising India’s coal resources.
Opportunities for Coal India, BCCL and CCL
The government’s coal gasification programme could also create opportunities for Coal India Limited (CIL) and its subsidiaries.
Coal-producing companies such as Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL) and other subsidiaries could explore potential participation in the emerging coal gasification value chain.
The technology could provide these companies with additional avenues to utilise domestic coal resources and support the production of higher-value industrial commodities.
However, no official announcement has been made regarding any fresh application from Coal India or its subsidiaries in the second round of the scheme. NTPC remains the only applicant identified by the Ministry of Coal for the two proposals received during that round.
India Targets 100 Million Tonnes of Coal Gasification by 2030
The government’s broader objective is to achieve 100 million tonnes of coal gasification capacity by 2030.
Through the Rs 37,500-crore incentive scheme, the Ministry of Coal aims to attract investments, encourage technological adoption and accelerate the development of commercially viable coal and lignite gasification projects.
NTPC’s two proposals mark an important step towards expanding the country’s coal gasification ecosystem, with a focus on urea, methanol and DME production.
The next stage will involve moving the proposals towards investment decisions, technology selection, project execution and eventual commercial production. The opening of the third application round is expected to provide further opportunities for companies to participate and support India’s progress towards its 2030 coal gasification target.
About NTPC Limited
NTPC Limited is India’s largest integrated power utility and a public-sector undertaking under the Ministry of Power, Government of India. The company is engaged in power generation and is expanding its presence in areas such as renewable energy, green hydrogen and other emerging energy technologies. Its participation in coal gasification projects reflects its interest in diversifying into new energy and industrial value chains.
Read also: NTPC Plans 58 GW Capacity Addition by 2032, Targets 149 GW Installed Power Generation Capacity
