Coal Gasification Scheme's Round 3 Opens; NTPC Bids in Round 2

The Ministry of Coal announced on 10 November 2026 that Round 2 of the Scheme for Promotion of Surface Coal and Lignite Gasification Projects has closed, and that Round 3 of the same scheme opens with effect from the same day. The scheme carries a financial outlay of Rs 37,500 crore and was cleared by the Union Cabinet on 13 May 2026.

What Round 2 brought in

Two applications were received in Round 2, and both came from NTPC Limited. One proposal is for the production of urea and the other for methanol along with dimethyl ether, commonly written as DME. The ministry reads this as proof that gasification can feed domestic output of industrial goods that India now largely buys from abroad, and can widen the ways in which the country's own coal and lignite are put to use.

Applications received in Round 2

Round 3 and its deadline

Round 3 gives eligible companies a fresh window to propose coal or lignite gasification plants. Applications under this round may be filed until 11 January 2027. By running the scheme in successive rounds rather than a single call, the ministry hopes to draw in more of the industry, pull in investment and speed up the take-up of gasification technology in the country.

Why gasification matters

• Gasification converts coal and lignite into synthesis gas, which can then be turned into chemicals and fertiliser inputs such as urea, methanol and DME.
• The national target is a coal gasification capacity of 100 million tonnes by 2030, and the scheme is the main financial instrument for reaching it.
• Fertiliser and chemical feedstock made at home cuts the import bill and lifts the value drawn from India's indigenous coal and lignite reserves.
• The scheme is open to eligible entities in both the public and the private sector, round after round.

For an aspirant, the facts worth carrying from this release are the name of the scheme, its outlay of Rs 37,500 crore, the Cabinet nod of 13 May 2026, the single applicant in Round 2, the opening of Round 3 on 10 November 2026 with a closing date of 11 January 2027, and the 2030 capacity target of 100 million tonnes.