Coal Gasification Scheme Gets 7 Applications: Adani, NTPC Among Applicants
New Delhi, 8 September 2026: The first round of the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has closed with a strong response. Seven applications have been received from leading private companies and public sector undertakings.
List of Applicants
|
Applicant |
Proposed End Product(s) |
|---|---|
|
Adani Enterprises Limited – Project 1 |
Urea |
|
Adani Enterprises Limited – Project 2 |
Urea |
|
Adani Enterprises Limited – Project 3 |
Urea |
|
Gallantt Ispat Limited |
Direct Reduced Iron and Syngas |
|
NTPC Limited |
Synthetic Natural Gas |
|
Shyam Sel & Power Limited |
Syngas |
|
Talcher Fertilisers Limited |
Urea |
A senior official of the Ministry of Coal said the seven applications in the very first round, including from some of India’s largest industrial houses and PSUs, reflect strong industry confidence in the scheme and in India’s coal gasification mission.
Scheme Background
The scheme was approved by the Union Cabinet on 13 May 2026 with a total outlay of ₹37,500 crore. Its key objectives are:
-
Promote conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, urea and hydrogen
-
Reduce India’s dependence on imports of LNG, urea, ammonia and methanol (which totalled about ₹2.77 lakh crore in FY 2024-25)
-
Support the national target of 100 million tonnes of coal gasification capacity by 2030 (including 75 million tonnes under this scheme)
-
Catalyse investments of ₹2.5–3 lakh crore and generate significant employment
The scheme builds on the earlier ₹8,500 crore Financial Incentive Scheme (approved in January 2024), under which eight projects are already under implementation.
Next Steps
Applications received in Round 1 will now be evaluated as per the scheme guidelines and the Request for Proposal (RFP).
Round 2 of the scheme has been opened from 8 September 2026. Application windows will continue to open at two-month intervals, giving more companies regular opportunities to participate.
The Ministry of Coal has thanked all applicants and reaffirmed its commitment to accelerating coal gasification technologies, strengthening energy security and import substitution, and positioning India as a leader in clean coal technologies.
Source: Press Information Bureau (PIB) release by Ministry of Coal dated 8 September 2026 (Release ID: 2307725).