Nil expenditure in gasification scheme for most of 2025-26: Parl panel

A parliamentary committee has flagged significant delays in expenditure under the scheme for promotion of coal, lignite gasification, noting zero spending for most of 2025-26 despite a revised allocation of Rs 285 crore, and suggested a time-bound spending framework with quarterly milestone verification.

The standing committee on coal, mines and steel was of the view that the scheme's outlay was brought down from Rs 300 crore at Budget Estimates (BE) 2025-26 to Rs 285 crore at Revised Estimates (RE) stage due to milestone-based needs, with no expenditure incurred and even a a single eligible project pending reimbursement formalities.

"The committee noted that no expenditure is incurred for most of the financial year, with even a single eligible project awaiting fulfilment of reimbursement formalities," it said.

 

The panel further noted that against a Revised Estimate of Rs 285 crore in 2025-26, the Budget Estimate for 2026-27 was sharply raised to Rs 3,525 crore.

The committee, therefore, recommended that the coal ministry adopt a time-bound expenditure projection framework, supported by quarterly milestone verification and independent financial closure certification.

It also recommended that the ministry encourage the use of indigenous high-ash gasification technology in line with NITI Aayog recommendations, particularly through category-III projects designed for demonstration and scale-up of indigenous technologies.

The committee also suggested exploring the feasibility of using Indian high-ash, low-grade coal for gasification projects and providing measurable import substitution for methanol, ammonia, fertilisers, SNG, etc.