Govt expands definition of indigenous tech under gasification scheme

The Ministry of Coal allows foreign-collaborated technologies adapted in India to qualify as indigenous under the coal and lignite gasification incentive scheme

Don't want to miss the best from Business Standard?

The Ministry of Coal has broadened the definition of “indigenous technology” under its financial support scheme for coal and lignite gasification projects.

 

It has allowed technologies adapted through technical collaboration or technology transfer to be considered indigenous provided they demonstrate that their significant development, adaptation or innovation occurs within India, and resulting technology is commercially viable under Indian conditions. 

 

In a set of responses to industry queries on the request for proposals (RFP) for projects, the ministry said technology that has been developed, owned, and substantially proven in India, including patents or intellectual property, will be referred to as ‘indigenous technology’.

 

The clarifications were issued following a pre-bid conference held on October 10, 2025, after the RFPs were published on September 30, seeking to accelerate investments in coal and lignite gasification projects in India.

 

The ministry has also allowed applicants to shift between the “commercially scalable demonstration project” and “small-scale product-based project” categories after applying, provided they continue to meet the eligibility and qualification criteria of the new category.

 

In a significant relaxation, the government exempted underground coal gasification (UCG) projects from the requirement of proven indigenous technology at pilot stage. It acknowledged that most UCG technologies worldwide are still at pilot scale. 

 

In case of  commerically scalable demonstrations involving UCG, the technology must be proven at the pilot scale. Such projects must involve a minimum capital expenditure of ₹100 crore.

 

At the same time, the ministry rejected industry requests to relax the financial eligibility requirement. It mandates that the bidder must have a minimum net worth of 30 per cent of the total equity commitment for the project.

 

Several companies had argued that this condition limits participation from firms undergoing financial recovery or restructuring. But the ministry said qualification criteria will remain unchanged.

 

In another key inclusion, the government has allowed carbon capture, utilisation, and storage (CCUS) technologies to be integrated into pilot and small-scale gasification projects under Category-III