Strong Industry Response to Rs. 37,500-Crore Coal Gasification Scheme; Ministry Holds Pre-Application Conference.
New Delhi:
The Ministry of Coal on Monday held a Pre-Application Conference for the Rs. 37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, drawing strong participation from public sector enterprises, private companies, technology providers and prospective applicants. The conference reflected growing industry interest in the Government’s flagship initiative aimed at promoting cleaner and value-added utilisation of domestic coal resources.
The conference was chaired by Additional Secretary, Ministry of Coal, Sanoj Kumar Jha, who reviewed the scheme and addressed industry stakeholders. Officials from the Ministry provided detailed clarifications on the Scheme Guidelines and the Request for Proposal (RFP), helping participants better understand the application process and project requirements.
During the session, the Ministry explained key aspects of the scheme, including eligibility criteria, evaluation methodology, financial incentives, documentation requirements and the overall application procedure. Officials also responded to a wide range of queries from participants, ensuring greater clarity for companies planning to submit proposals.
The Rs. 37,500-crore coal gasification scheme, approved by the Union Cabinet on May 13, 2026, is aimed at accelerating the development of surface coal and lignite gasification projects across the country. The initiative seeks to promote cleaner utilisation of India’s abundant coal reserves while encouraging the production of high-value downstream products.
Under the scheme, coal gasification projects will support the manufacturing of products such as synthetic natural gas (SNG), ammonia, methanol, Direct Reduced Iron (DRI), synthetic fuels and various industrial chemicals. These products are expected to play an important role in strengthening India’s energy security and industrial self-reliance.
The Ministry said the ambitious programme is expected to attract investments of around Rs. 2.5 lakh crore to Rs. 3 lakh crore, making it one of the country’s largest industrial investment initiatives in the coal sector.
Besides boosting industrial growth, the scheme is projected to facilitate the utilisation of nearly 75 million tonnes of domestic coal annually, helping optimise the use of indigenous resources while reducing dependence on imported fuels and chemical feedstocks.
The initiative is also expected to generate around 50,000 employment opportunities, creating jobs across project development, construction, operations, engineering, manufacturing and allied industries.
Officials said the scheme forms an important part of the Government’s strategy to diversify the use of coal beyond conventional power generation and promote cleaner technologies that add greater economic value to domestic resources.
The Ministry informed participants that the last date for submission of applications is September 7, 2026, and encouraged all eligible organisations to submit their proposals within the prescribed timeline.
With strong industry participation witnessed during the pre-application conference, the Ministry expressed confidence that the scheme would attract quality proposals and play a significant role in advancing India’s clean coal technology, industrial development, energy security and import substitution efforts.
