The Ministry of Coal has said Talcher Fertilisers Limited (TFL) and NTPC Limited have applied under the Centre’s ₹37,500-crore coal and lignite gasification scheme, rejecting reports that the programme has received no takers. The ministry said the first application window remains open until September 7 and that it would be premature to assess participation before the deadline.
New Delhi | September 6, 2026
The ministry said other prospective applicants are at various stages of preparing their projects and finalising applications. It said the scale and complexity of coal and lignite gasification projects required substantial preparation, including technology assessment, feedstock arrangements, project economics and detailed project proposals.
“The assertion that the Scheme has received ‘no takers’ is factually incorrect,” the ministry said, pointing to the applications submitted by TFL and NTPC. The statement was issued after reports questioned whether companies had shown interest in the scheme.
The Scheme for Promotion of Surface Coal/Lignite Gasification Projects was approved by the Union Cabinet on May 13, 2026. It has a total financial outlay of ₹37,500 crore and aims to support the conversion of domestic coal and lignite into higher-value products, including syngas, methanol, ammonia and urea.
According to the ministry, the scheme is expected to catalyse investments of around ₹2.5 lakh crore to ₹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 reaching 100 million tonnes of coal gasification capacity by 2030.
The ministry said it conducted stakeholder outreach after the scheme received approval. This included roadshows in New Delhi, Hyderabad and Mumbai, followed by the issuance of the 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 first application window will close on September 7. The ministry said the programme would provide companies with multiple opportunities to participate through rolling application rounds. After the first round closes, the next round will open from the following day and remain available for two months.
It said participation should be assessed after the prescribed application process and subsequent rounds are completed, rather than at the current interim stage. The ministry did not disclose the details of the applications submitted by TFL and NTPC in its statement.
