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Government Launches Mega ₹37,500 Crore Initiative to Promote Surface Coal and Lignite Gasification

Government launches ₹37500 crore coal gasification scheme

The Ministry of Coal has officially invited applications under its mega Scheme for Promotion of Surface Coal/Lignite Gasification Projects, which was approved by the Government on 13 May 2026 with a substantial financial outlay of ₹37,500 crore. This major initiative is designed to accelerate the development of surface gasification projects across the country, focusing on enhancing value addition in the domestic coal sector, reducing reliance on costly imports, and strengthening India’s self-reliance in the energy and chemical domains. Following the approval, the formal Scheme Guidelines were released on 25 June 2026, and the Request for Proposal (RFP) was published on 7 July 2026, setting the stage for eligible entities to submit their bids.

To ensure active stakeholder participation and to offer comprehensive clarity on the scheme provisions and bidding requirements, the Ministry will host a Pre-Application Conference on 20 July 2026. Prospective applicants and industry stakeholders are encouraged to attend this session and raise queries for official clarification. The final deadline for the submission of applications has been set for 7 September 2026. Comprehensive documentation, including the detailed application timeline, guidelines, and the RFP, is currently accessible on the Ministry of Coal’s official website for interested public and private entities to review.

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