India opens applications for ₹37,500 crore surface coal and lignite gasification scheme to cut import dependence

Coal mining operation in India
Coal mining operations in India. Representative image (Image source: Coal India)

The Ministry of Coal has invited applications under the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects.

According to a statement by the ministry today, 8 July, the scheme was approved by the government on 13 May with a total financial outlay of ₹37,500 crore.

The scheme is aimed at promoting surface coal and lignite gasification projects in the country.

The ministry said the initiative is intended to support value addition, reduce import dependence and strengthen India’s self-reliance in the energy and chemical sectors.

After approval of the scheme, the ministry issued the scheme guidelines on 25 June.

The Request for Proposal was published on 7 July, inviting eligible applicants to submit proposals under the scheme.

Read also : E20 rollout backed by rigorous testing, no cause for concern, say auto industry experts

To help prospective applicants understand the scheme provisions and application process, the ministry will hold a pre-application conference on 20 July 2026.

The ministry has encouraged prospective applicants and other stakeholders to participate in the conference and submit queries for clarification.

The last date for submission of applications is 7 September 2026.

The scheme guidelines, Request for Proposal and detailed application timeline have been made available on the Ministry of Coal website.

The move comes as the government seeks to push coal and lignite gasification as part of a wider effort to use domestic coal resources for value-added products and reduce dependence on imports in energy-linked sectors.

Read also : PM launches ₹29,000 crore Modified UDAN Scheme, Inaugurates ₹480 crore Jodhpur Airport terminal