The applicants include Adani Enterprises, NTPC, Talcher Fertilisers, Gallantt Ispat and Shyam Sel & Power, with proposals spanning urea, synthetic natural gas, syngas and direct reduced iron.
Adani Enterprises has submitted three separate applications, all for urea projects. Gallantt Ispat has proposed a project for the production of direct reduced iron and syngas, while NTPC has applied for a synthetic natural gas project.
Shyam Sel & Power has submitted a proposal for syngas production, while Talcher Fertilisers has applied for a urea project.
The seven applications mark the first set of proposals under the scheme and will now undergo detailed evaluation in accordance with the scheme guidelines and the request for proposal (RFP), the Ministry of Coal said.
The response comes as the government seeks to scale up coal gasification as part of its broader strategy to strengthen energy security, promote import substitution and create a domestic ecosystem around higher-value products derived from coal and lignite.
A senior Ministry of Coal official said the applications demonstrated industry’s confidence in the scheme, adding that reports suggesting there were no takers had been premature.
The second round of applications opened on Tuesday, September 8, with subsequent application windows scheduled to open at two-month intervals, providing eligible companies with further opportunities to participate.
The ministry said several prospective applicants are already at advanced stages of project preparation and are expected to submit proposals in the coming rounds.
The Request for Proposal for the first round was issued on July 7, 2026. Given the scale and capital intensity of coal and lignite gasification projects, applicants typically need to undertake pre-feasibility studies, technology assessments, environmental evaluations and detailed financial planning before submitting proposals.
₹37,500 crore scheme aims to boost coal gasification
The scheme was approved by the Union Cabinet, chaired by Prime Minister Narendra Modi, on May 13, 2026, with a total financial outlay of ₹37,500 crore.
It seeks to promote the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, urea and hydrogen.
The government aims to develop 100 million tonnes of coal gasification capacity by 2030, including 75 million tonnes under the current scheme.
The initiative is also intended to reduce India’s dependence on imports of liquefied natural gas, urea, ammonia and methanol. These products together accounted for around ₹2.77 lakh crore in imports during FY25, according to the Ministry of Coal.
The government expects the scheme to catalyse investments of ₹2.5 lakh crore to ₹3 lakh crore and generate direct and indirect employment across the value chain.
Builds on earlier ₹8,500 crore scheme
The latest initiative builds on the National Coal Gasification Mission and an earlier ₹8,500-crore financial incentive scheme approved in January 2024.
Eight gasification projects are already under implementation under the earlier scheme, the ministry said.
The government is seeking to use coal gasification to unlock higher-value applications for domestic coal while supporting the production of fertilisers, industrial gases, fuels and other products. The latest round of applications is the first major test of industry appetite for the expanded programme, with further rounds expected to bring more projects into the pipeline.
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