Centre to open applications for ₹37,500-cr coal gasification scheme

Opening of applications will offer the first indication of industry participation in the Centre's scheme aimed at scaling up domestic coal and lignite gasification

The Ministry of Coal will open applications received under its ₹37,500-crore financial incentive scheme for surface coal and lignite gasification on Tuesday, providing the first indication of industry participation in the Centre’s flagship programme to scale up domestic coal gasification.

 

The applications will open at 10:30 am on September 8 in New Delhi, following the closure of the first application window on September 7. This will cover applications submitted online through the MSTC portal as well as physical submissions to the ministry.

 

The number and profile of applicants will be closely watched after the ministry last week rejected media reports that the scheme had failed to attract industry interest, calling them “premature”.

 

 

The ministry disclosed that Talcher Fertilisers Ltd (TFL) and NTPC Ltd had already submitted applications through the online portal. It also said it was in communication with other prospective applicants at various stages of project preparation and application finalisation.

 

Tuesday’s opening will provide the first formal indication of the extent of industry interest in a scheme that seeks to mobilise large investments in coal-to-chemicals and other value-added products.

 

The scheme was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of ₹37,500 crore. It aims to accelerate coal and lignite gasification and convert domestic resources into higher-value products such as syngas, methanol, ammonia and urea.

 

The government expects greater use of domestic coal and lignite for these products to reduce dependence on high-value imported feedstock and strengthen India’s energy and economic security.

 

The coal ministry issued the Request for Proposal (RFP) on July 7, following which the online application portal was launched. A pre-application conference was held on July 20 to address queries from prospective applicants on eligibility, scheme provisions and the application process.

 

The government also held roadshows in New Delhi, Hyderabad, and Mumbai between May and June, involving state governments, public- and private-sector companies, technology providers, investors and financial institutions.

 

The Centre expects the scheme to catalyse ₹2.5 - ₹3 trillion worth of investments across 25 projects and generate around 50,000 direct and indirect employment opportunities. The programme is also intended to support the government’s target of achieving 100 million tonnes of coal gasification capacity by 2030.

 

The scheme provides for multiple application opportunities rather than making the September 7 deadline a one-time cut-off. Under the rolling mechanism, the next round will open the day after the first closes and remain open for two months.

 

The ministry said the mechanism is necessary given the scale and complexity of the projects envisaged. Prospective developers must undertake substantial preparatory work, including preparing pre-feasibility reports, evaluating technology options, arranging feedstock, assessing project economics and preparing detailed proposals.

 

The ministry expressed confidence that the scheme will receive sustained industry participation.