The second round of the ₹37,500 crore coal-gasification scheme attracted just two applications, both from NTPC, against seven in the first round
India aims to gasify 100 million tonnes of coal. The initiative could reduce dependence on imports of LNG, urea, ammonia and methanol
High upfront costs, long gestation periods and technological complexity are deterring investors. Cheaper imports also threaten the competitiveness of domestic output
Coal gasification is not inherently low-carbon. High emissions and water requirements make carbon capture and sustainable water management essential
Long-term purchase agreements with public-sector fertiliser, energy and chemical companies could assure buyers and improve project economics
Credit guarantees, infrastructure status, assured coal supplies and indigenous technology development can improve financing and encourage participation in the next round