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 received no takers.
The ministry said the first application window remains open and will close on September 7. It added that other prospective applicants are preparing projects and finalising their applications, making any assessment of participation before the deadline premature.
The Scheme for Promotion of Surface Coal/Lignite Gasification Projects was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of Rs 37,500 crore. It is designed to support the conversion of domestic coal and lignite into higher-value products, including syngas, methanol, ammonia and urea.
“The assertion that the Scheme has received ‘no takers’ is factually incorrect,” the ministry said, referring to the applications submitted by TFL and NTPC.
According to the ministry, the scheme is expected to catalyse investments of around Rs 2.5 lakh crore to Rs 3 lakh crore across nearly 25 projects. It is also projected to generate about 50,000 direct and indirect employment opportunities and contribute to the government’s objective of achieving 100 million tonnes of coal gasification capacity by 2030.
TFL and NTPC are among the first companies to submit applications under the programme. TFL is involved in the fertiliser sector, while NTPC is the country’s largest power generation utility. The ministry’s statement did not disclose the proposed capacities, locations, investment amounts or implementation schedules for the applications.
The ministry said it had conducted stakeholder outreach after the scheme was approved. This included roadshows in New Delhi, Hyderabad and Mumbai, followed by the issuance of a Request for Proposal on July 7 and the launch of an online application portal.
A pre-application conference was held on July 20 to address questions related to eligibility, scheme provisions and the application process, the ministry said. It added that large coal and lignite gasification projects require substantial preparation, including technology assessment, feedstock arrangements, project economics and the preparation of detailed proposals.
The application process will continue after the first window closes. Under the scheme, companies will have multiple opportunities to participate through rolling application rounds. The next round will open from the day after one round closes and will remain open for two months.
The ministry said the level of participation should be assessed after completion of the prescribed application process and subsequent rounds, rather than at the current interim stage. The immediate milestone for the programme is the closure of the first application window on September 7.
