Coal Gasification Scheme Gains Initial Participation
NTPC and Talcher Fertilisers (TFL) have submitted applications under the government’s ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, countering early reports that the scheme had attracted no applicants.
Approved by the Union Cabinet on 13 May 2026, the scheme aims to catalyse ₹2.5 lakh crore–₹3 lakh crore of investment across nearly 25 projects, create 50,000 direct and indirect jobs and achieve 100 million tonnes of coal gasification capacity by 2030, with all 25 plants targeted for completion within 5 years and 4 under-construction projects expected to be completed within 1 year.
The first application window remains open until 7 September 2026, so the final number of applicants will only be known after the deadline. The government has also planned rolling application rounds, with each subsequent round opening for 2 months, reflecting the significant preparation required for these projects, including technology assessment, feedstock arrangements, project economics and pre-feasibility studies.
The RFP was issued on 7 July 2026, following roadshows in New Delhi on 28 May, Hyderabad on 11 June and Mumbai on 18 June, while a pre-application conference was held on 20 July. Separately, Coal Minister G Kishan Reddy said on 13 August that 8 companies, including Coal India, are exploring syngas production.
The initiative seeks to convert domestic coal and lignite into higher-value products such as methanol, urea, ammonia, ammonium nitrate and synthetic natural gas, with the broader objective of increasing domestic resource utilisation and reducing dependence on imported feedstock.