Coal Ministry clarifies reports on recent position of Scheme for Promotion of Surface Coal/Lignite Gasification Projects
New Delhi, 5 September: In a major move towards the reference of the reports appearing in multiple media sites of the press, reciting that the Rs 37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has not attracted any applications, the Coal Ministry issues clarification of the correct facts on record and clarifies that such reports are premature and do not reflect the status of the Scheme or the application process.
The Scheme for Promotion of Surface Coal/Lignite Gasification Projects was approved by the Union Cabinet on 13 May 2026 with a total financial outlay of Rs 37,500 crore and aims for the development of coal and lignite gasification in the country and promoting the conversion of domestic coal and lignite into higher-value products, including syngas, methanol, ammonia, and urea.
Further, based on discussions with stakeholders, the Ministry has been informed that Talcher Fertilizers Limited (TFL) and NTPC Limited have already submitted their respective applications through the online portal.
This itself demonstrates that the assertion that the Scheme has received “no takers” is factually incorrect. The ministry is also in communication with other prospective applicants who are at various stages of project preparation and application finalization.
The ministry remains confident of strong industry participation in the scheme. The initiative is expected to catalyze investments of approximately Rs 2.5 lakh crore to Rs 3 lakh crore across nearly 25 projects and generate around 50,000 direct and indirect employment opportunities.
The scheme will also contribute significantly towards the government's broader objective of achieving 100 million tonnes of coal gasification capacity by 2030. The Ministry reiterates that the Scheme is at an early stage of implementation and that the first application window remains open until 7 September 2026, and therefore, it is not appropriate to characterize the Scheme as having received “no takers” at an interim stage.
Therefore, the success and level of participation should be assessed after completion of the prescribed application process and subsequent rounds, rather than on the basis of premature assessments.