The Centre’s Rs 37,500 crore scheme for surface coal and lignite gasification has received seven applications in its first round, with proposals from Adani Enterprises, Gallantt Ispat, NTPC, Shyam Sel & Power and Talcher Fertilisers.
Adani Enterprises submitted three applications for urea projects. Gallantt Ispat applied for a direct reduced iron and syngas project, while NTPC proposed a synthetic natural gas project. Shyam Sel & Power submitted an application for a syngas project and Talcher Fertilisers for a urea project.
The first application round followed the issuance of the Request for Proposal on July 7, 2026. The submitted projects will now undergo evaluation under the scheme guidelines and RFP.
Rs 37,500 Crore Scheme Targets 75 Million Tonnes
The Union Cabinet approved the scheme on May 13, 2026, with a financial outlay of Rs 37,500 crore. It covers conversion of domestic coal and lignite into products including syngas, methanol, ammonia, urea and hydrogen.
The government has set a target of achieving 100 million tonnes of coal gasification capacity by 2030, of which 75 million tonnes is expected to come under the scheme.
The programme is expected to catalyse investments of Rs 2.5-3 lakh crore.
The scheme follows an earlier Rs 8,500 crore programme approved in January 2024, under which eight gasification projects are currently under implementation.
Second Round Opens September 8
The second round of the Rs 37,500 crore scheme opens on September 8. Subsequent application windows are scheduled at two-month intervals.