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

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

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.