The Ministry of Coal has pushed back against news reports claiming that its ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has received no applications. The Ministry said such reports are premature because the application window for the first round is still open and will not close until 7 September 2026.
The scheme was approved by the Union Cabinet on 13 May 2026. It aims to develop coal and lignite gasification capacity in India and convert domestic coal and lignite into higher-value products such as syngas, methanol, ammonia and urea. This is intended to reduce India’s dependence on imported feedstock and strengthen energy security.
Key details of the scheme
- Total financial outlay: ₹37,500 crore
- The Ministry conducted roadshows to promote the scheme in New Delhi on 28 May 2026, Hyderabad on 11 June 2026 and Mumbai on 18 June 2026
- Request for Proposal issued on 7 July 2026 with online application portal launched thereafter
- Pre-application conference held on 20 July 2026 to clarify eligibility and procedural questions
- First round application deadline: 7 September 2026
- Applications will be accepted on a rolling basis in successive two-month windows, allowing companies more time to prepare large, complex projects
- Talcher Fertilisers Limited and NTPC Limited have already submitted applications
- The Ministry is in talks with other prospective applicants at various stages of preparation
- Expected total private investment: approximately ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects
- Targeted job creation: around 50,000 direct and indirect employment opportunities
- Related to broader government goal: achieving 100 million tonnes of coal gasification capacity by 2030
What this means for you
If you work in coal, energy, chemicals or fertiliser industries, this scheme opens avenues for large-scale investment and new project opportunities. Project developers still have time to prepare proposals for the rolling application rounds. The staggered application timeline means that companies needing more time to develop feasibility studies and project plans will not be disadvantaged by missing the first deadline.