New Delhi, September 5: The Ministry of Coal has rejected reports that its ₹37,500-crore scheme for promoting surface coal and lignite gasification has received no takers, saying the assessment is premature as the first-round application window remains open until September 7, 2026.
The ministry said NTPC Limited and Talcher Fertilisers Limited (TFL) have already submitted applications through the scheme’s online portal. It added that other prospective applicants are at different stages of project preparation and application finalisation.
“The assertion that the Scheme has received ‘no takers’ is factually incorrect,” the ministry said.
The ministry said the number of applications received in the first round cannot be assessed conclusively until the application window closes on September 7. Reports had earlier suggested that the scheme had failed to attract applicants ahead of the deadline.
The scheme was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of ₹37,500 crore. It aims to accelerate coal and lignite gasification in India and promote the conversion of domestic coal and lignite into value-added products such as syngas, methanol, ammonia and urea.
According to the ministry, the scheme could catalyse investments of around ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects and generate about 50,000 direct and indirect employment opportunities. The initiative is also intended to support the government’s target of achieving 100 million tonnes of coal gasification capacity by 2030.
After the Cabinet approval, the Ministry of Coal held roadshows in New Delhi on May 28, Hyderabad on June 11 and Mumbai on June 18 to engage potential project developers, technology providers, investors, financial institutions and other stakeholders. The Request for Proposal was issued on July 7, after which the online application portal was opened.
A pre-application conference was held on July 20 to address queries related to eligibility conditions, scheme provisions and the application process.
The ministry said projects involving coal and lignite gasification require substantial preparation, including pre-feasibility reports, assessment of technology options, arrangements for coal, lignite and other feedstock, evaluation of project economics and preparation of detailed project proposals.
The application process has been structured on a rolling basis. After the first round closes, the next round will open from the following day and remain available for two months, allowing companies that are not ready for the current round to participate in subsequent rounds.
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