Coal Gasification Scheme Gets Seven Applications From Five Firms
The Centre’s ₹37,500-crore coal gasification scheme has received seven applications from five companies, including Adani Enterprises and state-run NTPC, after the first application window closed on September 7, the Ministry of Coal said on Tuesday.
Adani Enterprises has submitted three applications for projects to produce urea. Talcher Fertilisers has also sought support for a urea project, while Gallantt Ispat has proposed a facility involving the production of direct reduced iron and syngas. NTPC has applied for a synthetic natural gas project, and Shyam Sel & Power has proposed a syngas production project.
The applications will now be evaluated against the scheme’s guidelines and the request for proposal, according to the ministry. The government has also opened the second application window from September 8. Under the rolling process, further windows will open every two months, allowing companies to submit proposals when their projects have reached an adequate stage of development.
The Union Cabinet approved the coal and lignite gasification scheme in May with a total financial outlay of ₹37,500 crore. The programme is intended to accelerate the conversion of domestic coal and lignite into higher-value products, including syngas, methanol, ammonia and urea.
The ministry expects the scheme to catalyse about ₹2.53 trillion in investments across approximately 25 projects and create around 50,000 direct and indirect jobs. It has set a target of developing 100 million tonnes a year of coal gasification capacity by 2030, including 75 million tonnes under the current scheme.
The initiative is also aimed at reducing India’s dependence on imports of liquefied natural gas, urea, ammonia and methanol. According to the ministry, imports of these products were worth about ₹2.77 trillion in 2025-26.
The applications follow the Coal Ministry’s rejection last week of reports that the scheme had failed to attract industry interest. The ministry had said such an assessment was premature because the first application window was still open, and had confirmed at the time that NTPC and Talcher Fertilisers had submitted applications.
The new programme builds on the National Coal Gasification Mission and an earlier ₹8,500-crore incentive programme approved in January 2024. Eight projects under that earlier programme are currently under implementation. The ministry’s evaluation of the seven proposals and the subsequent application windows will determine how quickly the proposed projects move from applications to implementation.
