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Coal Gasification Scheme: ₹37,500 Crore Outlay, NTPC Applies

The Coal Ministry said the ₹37,500 crore surface coal and lignite gasification scheme has drawn applications from Talcher Fertilisers and NTPC Limited.

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Coal Gasification Scheme: ₹37,500 Crore Outlay, NTPC Applies — GK24 title card

Why in News

On 5 September 2026 the Ministry of Coal clarified that the ₹37,500 crore surface coal and lignite gasification scheme has received applications from Talcher Fertilisers Limited and NTPC Limited, calling reports of no takers premature.

The Ministry of Coal issued a clarification on 5 September 2026 about the Scheme for Promotion of Surface Coal and Lignite Gasification Projects. Press reports had said the scheme drew no applications. The Ministry called those reports premature.

What the scheme is

The Union Cabinet approved the scheme on 13 May 2026. Its total financial outlay is ₹37,500 crore. The aim is to speed up coal and lignite gasification in India. Domestic coal and lignite are to be turned into higher-value products. The release names syngas, methanol, ammonia and urea. The purpose is to cut dependence on imported feedstock and to strengthen India's energy and economic security.

The application timeline

StepDate
Cabinet approval13 May 2026
Roadshow in New Delhi28 May 2026
Roadshow in Hyderabad11 June 2026
Roadshow in Mumbai18 June 2026
Request for Proposal issued7 July 2026
Pre-application conference20 July 2026
First-round deadline7 September 2026

Who has applied

The Ministry said Talcher Fertilisers Limited and NTPC Limited have already filed applications through the online portal. That alone, it said, shows the claim of no takers to be wrong. It added that it is in touch with other prospective applicants at various stages of project preparation.

Why applications take time

Projects of this size need heavy preparation. An applicant has to prepare a pre-feasibility report, weigh technology options, arrange coal or lignite and other feedstock, work out project economics and draw up a detailed proposal. The Ministry expects more proposals as the deadline nears.

The rolling-round design

Application rounds run on a rolling basis. When one round closes, the next opens the very next day and stays open for two months. A company that needs more time is therefore not shut out for missing an earlier round.

What the scheme is expected to deliver

The Ministry expects investment of about ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects. It expects around 50,000 direct and indirect jobs. The scheme also serves the wider target of 100 million tonnes of coal gasification capacity by 2030.

Important Facts

SchemeScheme for Promotion of Surface Coal and Lignite Gasification Projects
MinistryMinistry of Coal
Approved byUnion Cabinet, on 13 May 2026
Outlay₹37,500 crore
Products targetedSyngas, methanol, ammonia and urea
Applicants namedTalcher Fertilisers Limited and NTPC Limited
Request for Proposal issued7 July 2026
First-round deadline7 September 2026
Expected investmentAbout ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects
Expected employmentAround 50,000 direct and indirect jobs
National target100 million tonnes of coal gasification capacity by 2030

Exam Point of View

Remember the outlay of ₹37,500 crore, the Cabinet approval date of 13 May 2026, the products syngas, methanol, ammonia and urea, the two named applicants, the expected 25 projects and 50,000 jobs, and the target of 100 million tonnes of coal gasification capacity by 2030.

Practice Questions

Q1.Government SchemesMedium

What is the total financial outlay of the Scheme for Promotion of Surface Coal and Lignite Gasification Projects?

  1. A.₹8,500 crore
  2. B.₹37,500 crore
  3. C.₹1 lakh crore
  4. D.₹6,000 crore
Show answer

Correct answer: B. ₹37,500 crore

Explanation

The correct answer is ₹37,500 crore. The Ministry of Coal states that the Union Cabinet approved the scheme on 13 May 2026 with that total financial outlay, and the same figure appears at the start of the clarification issued about press reports on the scheme. Options A, C and D are round or near figures of the kind used to build distractors in scheme questions, and none of them is supported by the release. Two related numbers should not be confused with the outlay. The first is the expected investment the scheme is meant to catalyse, which is about ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects. The second is the expected employment of around 50,000 direct and indirect jobs. The outlay is what the Government commits, while the investment figure is what industry is expected to bring in. Keep the purpose in mind as well: converting domestic coal and lignite into syngas, methanol, ammonia and urea, so that dependence on imported feedstock falls.

Q2.Government SchemesMedium

Which two companies were named by the Ministry of Coal as having applied under the gasification scheme?

  1. A.Coal India Limited and GAIL
  2. B.Talcher Fertilisers Limited and NTPC Limited
  3. C.NLC India and IOCL
  4. D.SAIL and ONGC
Show answer

Correct answer: B. Talcher Fertilisers Limited and NTPC Limited

Explanation

The correct answer is Talcher Fertilisers Limited and NTPC Limited. The Ministry said it had been informed that both companies had already submitted their applications through the online portal, and it used this fact to reject the claim that the scheme had received no takers. The other options list well-known public sector companies in coal, gas, lignite, refining and steel, all of which a candidate might reasonably associate with a coal gasification programme, and that is exactly why they appear as distractors. Note the wider context for the examination: the first-round deadline was 7 September 2026, and the Ministry pointed out that the number of applications could not be judged while the window was still open. The scheme also uses rolling rounds, so the next round opens the day after a round closes and stays open for two months, which means more applicants can come in later without being shut out.

Q3.Government SchemesMedium

The gasification scheme contributes to the target of achieving how much coal gasification capacity by 2030?

  1. A.50 million tonnes
  2. B.75 million tonnes
  3. C.100 million tonnes
  4. D.200 million tonnes
Show answer

Correct answer: C. 100 million tonnes

Explanation

The correct answer is 100 million tonnes. The release says the scheme will contribute significantly to the Government's broader objective of achieving 100 million tonnes of coal gasification capacity by 2030, which makes the pair of numbers, 100 million tonnes and the year 2030, one of the most likely items to be asked from this story. Options A, B and D are plausible-looking alternatives but find no support in the release. While revising, keep this national target separate from the three other figures attached to the scheme: the outlay of ₹37,500 crore approved by the Union Cabinet on 13 May 2026, the expected investment of about ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects, and the expected employment of around 50,000 direct and indirect jobs. Also remember the output side of gasification, namely syngas, methanol, ammonia and urea, since a question can equally be framed on what coal is converted into rather than on the numbers.

Frequently Asked Questions

What is the outlay of the surface coal and lignite gasification scheme?

₹37,500 crore. The Union Cabinet approved the scheme on 13 May 2026 to accelerate coal and lignite gasification and to convert domestic coal into higher-value products.

Which companies have applied under the scheme?

Talcher Fertilisers Limited and NTPC Limited had submitted applications through the online portal, the Ministry of Coal said, adding that other prospective applicants are at various stages of preparation.

What products is the scheme meant to promote?

Higher-value products made from domestic coal and lignite, namely syngas, methanol, ammonia and urea. The purpose is to reduce dependence on imported feedstock.

How do the application rounds work?

On a rolling basis. When one round closes, the next opens the very next day and stays open for two months, so a company needing more preparation time is not excluded. The first round closed on 7 September 2026.

Sources