The Centre’s coal gasification scheme has received applications from Talcher Fertilisers Limited (TFL) and NTPC Limited, the Ministry of Coal said on Saturday, rejecting reports that the Rs 37,500 crore programme had attracted no applicants.
New Delhi | September 5, 2026
The ministry said the first application window under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects remains open and will close on September 7. It said it was premature to assess participation before the application window and subsequent rounds had been completed.
“The assertion that the Scheme has received ‘no takers’ is factually incorrect,” the ministry said, referring to the applications submitted by TFL and NTPC.
The scheme was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of Rs 37,500 crore. It seeks to support projects that convert domestic coal and lignite into higher-value products, including syngas, methanol, ammonia and urea.
According to the ministry, the programme is expected to catalyse investments of between Rs 2.5 lakh crore and Rs 3 lakh crore across nearly 25 projects. It has also estimated that the projects could generate about 50,000 direct and indirect employment opportunities.
The scheme forms part of the government’s broader objective of creating 100 million tonnes of coal gasification capacity by 2030, the ministry said. The programme is intended to promote the use of domestic coal and lignite in industrial processes that produce chemical and fertiliser-related inputs.
The ministry said other prospective applicants were at different stages of preparing their projects and finalising their proposals. It noted that large-scale coal and lignite gasification projects require substantial preparation, including technology assessment, arrangements for feedstock, evaluation of project economics and the preparation of detailed applications.
The government undertook stakeholder outreach following the scheme’s approval, including roadshows in New Delhi, Hyderabad and Mumbai. The Request for Proposal was issued on July 7, followed by the launch of an online application portal, the ministry said.
A pre-application conference was held on July 20 to address questions related to eligibility, scheme provisions and the application process. The ministry said the conference was part of the preparatory process for prospective project developers and applicants.
The application process will continue through rolling rounds. After the first round closes, the next application window will open from the following day and remain available for two months, allowing companies additional time to complete project preparation and submit proposals.
The ministry said participation in the scheme should be assessed after the prescribed application process and subsequent rounds are completed, rather than at the current interim stage. The first application window is scheduled to close on September 7.
