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.

The MoUs were signed in the presence of NTPC CMD Gurdeep Singh, GMDC MD Roopwant Singh, and other senior officials.