New Delhi, Sep 8: The Centre’s efforts to expand coal gasification in India have received a strong response from industry, with seven applications submitted in the first round of the Rs 37,500 crore scheme for promoting surface coal and lignite gasification projects.
The applications have been submitted by major companies and public sector enterprises, including Adani Enterprises, NTPC, Talcher Fertilisers, Gallantt Ispat and Shyam Sel & Power.
Adani Enterprises has submitted three proposals, all focused on urea production. Talcher Fertilisers has also proposed a urea project. Gallantt Ispat has submitted a proposal involving Direct Reduced Iron and syngas, while NTPC has proposed a synthetic natural gas project. Shyam Sel & Power has applied for a syngas project.
The Ministry of Coal said the response reflects growing interest among companies in using domestic coal resources to produce higher-value industrial products. The initiative is also expected to support India’s efforts to strengthen energy security, reduce import dependence and promote domestic manufacturing.
Coal gasification converts coal or lignite into syngas, which can be used to produce products such as urea, methanol, ammonia, hydrogen and synthetic natural gas. The technology can help India use its domestic coal resources more efficiently while supporting the production of products that are currently imported in large quantities.
The Union Cabinet approved the Rs 37,500 crore scheme in May 2026. The programme is aimed at encouraging investment in coal gasification and reducing India’s dependence on imports of LNG, urea, ammonia and methanol. These commodities accounted for imports worth around Rs 2.77 lakh crore during 2024-25, according to the Ministry.
The scheme is part of India’s broader plan to develop 100 million tonnes of coal gasification capacity by 2030. Of this, 75 million tonnes of capacity is expected to be supported through the new scheme.
The government expects the programme to attract investments of around Rs 2.5 lakh crore to Rs 3 lakh crore and create direct and indirect employment across the coal gasification and downstream industries.
The latest initiative follows an earlier Rs 8,500 crore financial incentive scheme approved in January 2024. Eight gasification projects under that programme are currently under implementation.
The seven applications received in the first round will now be examined under the scheme’s guidelines and the Request for Proposal. The second round of applications has also opened from September 8, giving more eligible companies an opportunity to participate.
The government is looking to build a stronger domestic ecosystem around coal gasification, with a focus on value-added utilisation of coal, import substitution, energy security and the development of cleaner coal-based technologies.