·
The Ministry
of Coal clarified that reports claiming the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite
Gasification Projects has received no applications are premature and factually incorrect.
·
The scheme
was approved by the Union Cabinet
on 13 May 2026 with a total financial outlay of ₹37,500 crore.
·
It aims
to promote the conversion of domestic coal and lignite into higher-value products
such as:
o Syngas
o Methanol
o Ammonia
o Urea
·
The initiative
seeks to reduce dependence
on imported feedstock, increase utilisation of domestic coal and
lignite resources, and strengthen India's energy and economic security.
·
The Ministry
conducted stakeholder outreach and roadshows in:
o New Delhi – 28 May 2026
o Hyderabad – 11 June 2026
o Mumbai – 18 June 2026
·
The Request for Proposal (RFP) was issued on
7 July 2026, followed by the launch of an online application portal.
·
A pre-application conference was held on 20
July 2026 to clarify eligibility requirements, scheme provisions
and the application process.
·
The first-round application deadline is 7 September
2026, meaning the final number of applications cannot yet be conclusively
assessed.
·
The Ministry
confirmed that Talcher Fertilisers
Limited (TFL) and NTPC Limited have already submitted applications,
disproving claims that the scheme has received “no takers”.
·
Other prospective
applicants are reportedly at various stages of project preparation and application finalisation.
·
Due to
the large scale and complexity of gasification projects, companies need substantial
preparatory work, including:
o Pre-feasibility studies
o Technology assessment
o Feedstock arrangements
o Project economics evaluation
o Detailed project proposal preparation
·
The scheme
provides rolling application
rounds. After one round closes, the next round opens immediately
and remains open for two months,
giving companies additional opportunities to participate.
·
The Ministry
expects the scheme to catalyse approximately ₹2.5 lakh crore to ₹3 lakh crore in investment
across nearly 25 projects.
·
The initiative
is also expected to generate around 50,000
direct and indirect jobs.
·
The scheme
supports India's broader target of achieving 100 million tonnes of coal gasification capacity by 2030.
·
The Ministry
remains confident of strong industry participation and has urged that the scheme's
success be assessed after completion
of the application process and subsequent rounds, rather than on
interim reports.
[ABS News Service/05.09.2026]
Reference is drawn to reports appearing
in a section of the press suggesting that the ₹37,500 crore Scheme for Promotion
of Surface Coal/Lignite Gasification Projects has not attracted any applications.
The Ministry of Coal wishes to place the correct facts on record and clarify that
such reports are premature and do not reflect the status of the Scheme or the application
process.
The Scheme for Promotion of Surface Coal/Lignite
Gasification Projects was approved by the Union Cabinet on 13 May 2026 with a total
financial outlay of ₹37,500 crore. The Scheme is aimed at accelerating the
development of coal and lignite gasification in the country and promoting the conversion
of domestic coal and lignite into higher-value products, including syngas, methanol,
ammonia and urea. By facilitating greater utilisation of domestic resources for
production of such value-added products, the Scheme seeks to reduce dependence on
imported feedstock and strengthen India’s energy and economic security.
Following approval of the Scheme, the
Ministry of Coal undertook sustained outreach and stakeholder engagement to encourage
participation from potential project developers. Roadshows were organised in New
Delhi on 28 May 2026, Hyderabad on 11 June 2026 and Mumbai on 18 June 2026. These
events brought together representatives from State Governments, public and private
sector companies, technology providers, investors, financial institutions and other
stakeholders. The events were attended by the Union Minister of Coal and Mines and
senior officials of the Ministry, reflecting the Government’s emphasis on building
awareness and facilitating industry participation in the Scheme.
The Request for Proposal under the Scheme
was issued on 7 July 2026, following which the online portal for submission of applications
was launched. To facilitate greater clarity and ensure that prospective applicants
had an opportunity to seek clarifications, a pre-application conference was held
on 20 July 2026. During the conference, prospective applicants raised queries and
sought clarifications relating to various provisions of the Scheme, eligibility
requirements and the application process. The Ministry has also continued to engage
with interested stakeholders to facilitate their participation.
The first-round deadline for submission
of applications is 7 September 2026. Accordingly, the number of applications received
in the first round cannot be assessed or stated conclusively until the application
window closes. Any conclusion that the Scheme has received no applications, while
the first application window is still open, is therefore premature and does not
represent the actual position.
Further, based on discussions with stakeholders,
the Ministry has been informed that Talcher Fertilisers Limited (TFL) and NTPC Limited
have already submitted their respective applications through the online portal.
This itself demonstrates that the assertion that the Scheme has received “no takers”
is factually incorrect. The Ministry is also in communication with other prospective
applicants who are at various stages of project preparation and application finalisation.
Given the significant scale and complexity
of the projects envisaged under the Scheme, prospective applicants are required
to undertake substantial preparatory work, including preparation of Pre-Feasibility
Reports, assessment of technology options, identification of coal/lignite and other
feedstock arrangements, evaluation of project economics and preparation of detailed
project proposals. It is therefore expected that additional applicants may finalise
and submit their proposals as the deadline approaches.
Importantly, the Scheme has been structured
to provide industry with multiple opportunities to participate. Application rounds
will operate on a rolling basis. Upon closure of the application window for one
round, the subsequent round will open from the very next day and remain open for
a period of two months. This ensures that companies that may require additional
time to complete project preparation are not excluded merely because they are unable
to participate in an earlier round. The rolling-round mechanism has been deliberately
incorporated in view of the substantial preparation and investment requirements
associated with large-scale coal/lignite gasification projects.
The Ministry remains confident of strong
industry participation in the Scheme. The initiative is expected to catalyse investments
of approximately ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects
and generate around 50,000 direct and indirect employment opportunities. The Scheme
will also contribute significantly towards the Government’s broader objective of
achieving 100 million tonnes of coal gasification capacity by 2030.
The Ministry reiterates that the Scheme
is at an early stage of implementation and that the first application window remains
open until 7 September 2026 and therefore, it is not appropriate to characterise
the Scheme as having received “no takers” at an interim stage. Its success and level
of participation should be assessed after completion of the prescribed application
process and subsequent rounds, rather than on the basis of premature assessments.
The Ministry remains confident that the
Scheme will receive sustained industry participation and will provide a significant
impetus to the development of coal and lignite gasification in India.