NEW DELHI. India’s surface coal and lignite gasification programme has received a significant boost following the receipt of seven major project proposals in the first round of the Centre’s Rs 37,500 crore incentive scheme. Leading public sector and private industrial conglomerates have submitted applications, including Adani Enterprises Limited, NTPC Limited, Talcher Fertilisers Limited, Gallantt Ispat Limited, and Shyam Sel & Power Limited. Among the submissions, Adani Enterprises filed three separate proposals for urea production, Talcher Fertilisers proposed a urea unit, Gallantt Ispat applied for Direct Reduced Iron and syngas, NTPC proposed synthetic natural gas, and Shyam Sel & Power filed for a syngas project. The Ministry of Coal hailed the strong participation as a decisive vote of industry confidence in clean coal conversion technologies, expected to catalyze capital investments of Rs 2.5 lakh crore to Rs 3 lakh crore.
Approved by the Union Cabinet in May 2026, the Rs 37,500 crore initiative aims to convert domestic coal resources into value-added products like urea, methanol, ammonia, synthetic natural gas, and hydrogen. The mission is designed to curtail India’s heavy reliance on imported energy and chemical feedstocks, which accounted for approximately Rs 2.77 lakh crore during 2024-25. Aligning with the national target to achieve 100 million tonnes of coal gasification capacity by 2030, this new framework builds upon an earlier Rs 8,500 crore incentive scheme under which eight projects are already being executed. While the initial Round 1 proposals undergo technical evaluation, the Ministry of Coal has opened the Round 2 application window starting 8 September 2026, with bidding rounds opening every two months to accommodate companies in advanced preparation stages.
