Seven applications have been submitted in the first round of the Centre’s ₹37,500 crore coal gasification scheme, with proposals spanning urea, direct reduced iron, syngas and synthetic natural gas projects, the Ministry of Coal said on Tuesday.
The applications were submitted by Adani Enterprises, Gallantt Ispat, NTPC, Shyam Sel & Power and Talcher Fertilisers. Adani Enterprises submitted three separate applications for urea projects. Gallantt Ispat applied for a direct reduced iron and syngas project, while NTPC proposed a synthetic natural gas project.
Shyam Sel & Power submitted an application for a syngas project and Talcher Fertilisers applied for a urea project. The first round closed after the application deadline following the issuance of the Request for Proposal on July 7, 2026.
The Ministry of Coal said the proposals will now undergo detailed evaluation under the scheme guidelines and the RFP. A senior ministry official described the response as a positive signal for the government’s coal gasification programme.
“Seven applications in the very first round, including from some of India’s largest industrial houses and public sector undertakings, are a clear vote of confidence in the scheme and in India’s coal gasification mission,” the official said.
The scheme was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of ₹37,500 crore. It seeks to support the conversion of domestic coal and lignite into higher-value products, including syngas, methanol, ammonia, urea and hydrogen.
According to the ministry, the initiative is intended to reduce dependence on imports of liquefied natural gas, urea, ammonia and methanol. The government has set an objective of achieving 100 million tonnes of coal gasification capacity by 2030, including 75 million tonnes through projects supported under the scheme.
The Centre expects the programme to catalyse investments of ₹2.5 lakh crore to ₹3 lakh crore and create employment opportunities across the value chain. The projects could also add industrial capacity in sectors linked to fertilisers, steel, synthetic fuels and other chemical products, although their implementation will depend on the evaluation and approval process.
The scheme builds on an earlier ₹8,500 crore programme approved in January 2024. The ministry said eight gasification projects under that programme are currently under implementation.
The second round of applications will open on September 8, with further application windows scheduled at two-month intervals. The ministry said several prospective applicants are at advanced stages of project preparation and are expected to submit proposals in the forthcoming rounds.
