Coal gasification scheme: Second-round applications to open on November 10

Companies had until November 9 to submit proposals through the MSTC portal for the second round of the scheme, which aims to build 75 million tonnes of coal gasification capacity by 2030

The Ministry of Coal will open applications submitted for the second round of its Rs 37,500-crore scheme to promote surface coal and lignite gasification on November 10, with the deadline for submission of proposals ending on Monday.

 

According to a notice issued by the ministry, companies have been asked to submit their applications online through the MSTC portal by 5:30 pm on November 9. Physical copies of documents, wherever applicable, must also reach the ministry by the same deadline.

 

The opening of applications will be conducted at 10:30 am on November 10 at the ministry's office in New Delhi. Both applications submitted through the online portal and physical applications received by its Coal Controllerate section will be opened.

  

The second round follows the first round of the scheme, which attracted seven applications from five companies, including NTPC, Adani Enterprises, Gallantt Ispat, Shyam Sel and Power, and Talcher Fertilisers.

 

The opening of applications in the second round will be closely watched, as the ministry had described the first-round response as a vote of confidence in the government's coal gasification programme. The programme aims to encourage companies to convert domestic coal and lignite into higher-value products.

 

The scheme was approved by the Union Cabinet in May 2026 with a financial outlay of Rs 37,500 crore. It aims to support the development of 75 million tonnes of coal gasification capacity by 2030, contributing to the country's broader target of achieving 100 million tonnes of such capacity by the same year.

 

Coal gasification involves converting coal into syngas, which can subsequently be used to manufacture products such as methanol, ammonia, urea, hydrogen and synthetic natural gas.

 

The government intends to use the programme to reduce India's dependence on imports of liquefied natural gas (LNG), urea, ammonia, methanol and other high-value industrial feedstocks.

 

Imports of these products together amounted to approximately Rs 2.77 trillion in 2024-25, according to the ministry.

 

The scheme is expected to catalyse investments of Rs 2.5-3 trillion and generate direct and indirect employment opportunities across the value chain.

 

It builds on an earlier financial incentive scheme worth Rs 8,500 crore, approved in January 2024, under which eight coal gasification projects are already under implementation.

 

Applications received in the second round will be opened for scrutiny following the submission deadline. The ministry permits a maximum of two representatives per application to attend the opening.