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Coal Ministry invites applications for Rs 37,500 crore coal gasification scheme

New Delhi, July 20 (IANS) The Ministry of Coal on Monday conducted a well‑attended pre‑application conference for the Rs 37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, outlining guidelines and timelines for applicants.

The conference drew enthusiastic participation from public sector enterprises, private companies, technology providers, and prospective applicants, reflecting strong industry interest in the government’s flagship initiative to promote cleaner and value-added utilisation of domestic coal, the statement from Ministry of Coal said.

The ministry provided detailed clarifications on scheme guidelines, the request for proposal, eligibility criteria, evaluation methodology, financial incentives and the application process.

The statement added that participants’ queries were comprehensively addressed.

The ministry informed participants that the last date for submission of applications is September 7, 2026 and urged all eligible entities to submit their proposals within the prescribed timeline.

Approved by the Union Cabinet in May 2026, the Rs 37,500 crore scheme aims to accelerate the development of surface coal/lignite gasification projects and support the production of high-value downstream products such as synthetic natural gas, ammonia, methanol, DRI, synthetic fuels, and chemicals.

The ministry said the scheme is expected to catalyse investments of around Rs 2.5–3 lakh crore, facilitate utilisation of nearly 75 million tonnes of coal annually and generate about 50,000 employment opportunities.

The scheme aims to significantly reduce India’s dependence on imports of energy and chemical products.

The Ministry of Coal had in June organised a BRICS side event on clean coal technologies focused on coal gasification’s role in supporting energy security, industrial development and cleaner utilisation of coal.

The event highlighted the role of coal gasification in strengthening India’s energy security and supporting industrial development. Coal gasification enables the conversion of coal into syngas, used for the production of ammonia, methanol, hydrogen, synthetic fuels, DRI and other value-added products.

—IANS

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