India’s ₹37,500 Crore Coal Gasification Plan Draws NTPC, TFL Applications

The Ministry of Coal has rejected reports suggesting that the Centre’s ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has failed to attract applicants, calling such assessments premature as the first application window remains open until September 7, 2026. The Ministry confirmed that Talcher Fertilisers Limited (TFL) and NTPC Limited have already submitted applications, while other prospective developers are at different stages of project preparation.

Approved by the Union Cabinet on May 13, 2026, the scheme seeks to accelerate coal and lignite gasification and convert domestic resources into higher-value products including syngas, methanol, ammonia and urea. The initiative is aimed at reducing dependence on imported feedstocks while strengthening India’s energy and economic security. The government expects the scheme to catalyse ₹2.5 lakh crore to ₹3 lakh crore in investments across nearly 25 projects and create around 50,000 direct and indirect jobs.

The government’s push comes against the backdrop of its broader target of achieving 100 million tonnes of coal gasification capacity by 2030. Official data indicates that around 22.6 million tonnes per annum (MTPA) of capacity is already operational or under implementation, including approximately 8 MTPA at Jindal Steel Limited, 2.6 MTPA at TFL and around 12 MTPA across eight projects approved under the earlier ₹8,500-crore incentive scheme.

To build industry interest, the Ministry conducted roadshows in New Delhi on May 28, Hyderabad on June 11 and Mumbai on June 18, bringing together state governments, public and private companies, technology providers, investors and financial institutions. The Request for Proposal was issued on July 7, followed by the online application portal and a pre-application conference on July 20.

The Ministry said large gasification projects require substantial preparatory work, including pre-feasibility studies, technology assessment, coal or lignite arrangements, project-economics evaluation and detailed proposals. To accommodate developers needing more time, the scheme provides for rolling application rounds, with each subsequent window opening for two months after the previous round closes.

The September 7 deadline will therefore be an important first checkpoint, but not the final measure of industry confidence. The larger test will be whether applications translate into financial closure, construction and commercially viable projects. For now, the Ministry maintains that claims of “no takers” do not reflect the actual position and expects sustained participation as subsequent rounds progress.