New Delhi: Five companies have applied under the first round of the Rs 37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, the Ministry of Coal said in a statement on Tuesday. They are NTPC Limited, Adani Enterprises Limited, Gallantt Ispat Limited, Shyam Sel & Power Limited and Talcher Fertilisers Limited (TFL). Between them, the five have filed seven project applications, which the ministry described as an "overwhelming response from the industry."
Follow Energy Watch on X
The end products differ across the applications. NTPC's single project is for synthetic natural gas. Adani Enterprises has applied for three projects and Talcher Fertilisers for one, all of them for urea. Gallantt Ispat has proposed direct reduced iron and syngas from its single project, while Shyam Sel & Power has proposed syngas alone.
"When we said reports of 'no takers' were premature, we were confident that industry would respond and it has, decisively. Seven applications in the very first round, including from some of India's largest industrial houses and public sector undertakings, are a clear vote of confidence in the scheme and in India's coal gasification mission. The market has spoken, and it has spoken loudly," said Alok Kumar Singh, Advisor (Projects), Ministry of Coal.
The Request for Proposal (RFP) for the round was issued on July 7. Coal and lignite gasification projects need extensive preparatory work before a bid can be filed, including pre-feasibility studies, technology assessments and detailed financial planning. On that basis, the ministry said the seven applications were "a testament to the seriousness with which industry has engaged with the scheme."
The Union Cabinet approved the scheme on May 13 with a total financial outlay of Rs 37,500 crore. It is designed to promote the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, urea and hydrogen. The ministry said the scheme is intended to reduce India's dependence on imports of Liquefied Natural Gas (LNG), urea, ammonia and methanol, which by its account together accounted for approximately Rs 2.77 lakh crore of imports during financial year 2024-25.
The scheme is tied to a national objective of reaching 100 million tonnes of coal gasification capacity by 2030. Of that, 75 million tonnes is to be developed under this scheme. The ministry estimates the scheme will catalyse investments of Rs 2.5-3 lakh crore.
It builds on the National Coal Gasification Mission and on an earlier Rs 8,500-crore financial incentive scheme approved in January 2024. Eight gasification projects are currently under implementation under that earlier scheme.
The Round 1 applications will now undergo detailed evaluation in accordance with the scheme guidelines and the RFP. The ministry also announced the opening of Round 2 on Tuesday. Application windows will continue to open at two-month intervals under the RFP. The ministry said several prospective applicants are "presently at advanced stages of project preparation" and are expected to submit proposals in forthcoming rounds.
Follow Energy Watch on LinkedIN
"The ministry appreciates the participation of all applicants and their confidence in the scheme," the Ministry of Coal said. "It remains committed to accelerating the development of coal gasification technologies in India, strengthening energy security and import substitution, and positioning the country as a global leader in clean coal technologies."