Mumbai: The government’s Rs 37,500 crore incentive scheme to promote coal gasification projects has reportedly received no applications so far, with the September 7 deadline approaching.
Sources said neither private companies nor public sector players have submitted bids yet, raising questions over participation in the government’s plan to gasify 75 million tonnes of coal and lignite.
Coal Ministry Says Deadline Not Over
The Coal Ministry, however, said the final number of applications cannot be determined until the September 7 deadline ends because the entire application process is online.
The ministry added that it has received communications from several industries expressing interest in participating in the scheme.
The Request for Proposal (RFP) was issued on July 7, 2026, with September 7 fixed as the last date for submitting applications.
Given the large investments involved, companies need time to prepare project proposals and preliminary feasibility reports, the ministry said. Application rounds are planned every two months, giving companies further opportunities to participate.
Why Coal Gasification Matters
The Union Cabinet had approved the Rs 37,500 crore financial incentive programme to promote surface coal and lignite gasification projects.
Coal gasification converts coal or lignite into synthetic gas, or syngas. It can be used to manufacture products including methanol, fertilisers, hydrogen and chemicals.
The government expects the programme to reduce India’s dependence on imports of LNG, urea, ammonia and methanol while improving energy security.
India has around 401 billion tonnes of coal reserves and 47 billion tonnes of lignite reserves. Coal currently accounts for more than 55% of the country’s energy mix.
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India’s import bill for products that could potentially be substituted through domestic production, including LNG, urea, ammonia, coking coal and methanol, stood at around Rs 2.77 lakh crore in FY25.
The latest programme builds on the National Coal Gasification Mission launched in 2021 and an earlier Rs 8,500 crore scheme approved in January 2024. Under that programme, eight projects worth Rs 6,233 crore are currently under implementation.
