Five companies have shown interest in the government’s ₹37,500 crore coal gasification scheme, with Ltd submitting three separate applications for three projects and state-run Ltd and Talcher Fertilizers Ltd submitting one each.
Other applicants are Gallantt Ispat Ltd and Shyam Sel & Power Ltd, according to a statement from the coal ministry. The second round of applications under the scheme opened on Tuesday.
“Seven applications in the very first round, including from some of India’s largest industrial houses and public sector undertakings, are a clear vote of confidence in the scheme and in India’s coal gasification mission,” said Alok Kumar Singh, advisor (projects), ministry of coal.
The applications will now undergo detailed evaluation under the scheme guidelines. Application windows will open every two months, the ministry said, adding that several prospective applicants are at advanced stages of project preparation and are expected to apply in subsequent rounds.
From coal to gas
Coal and lignite gasification projects are large, capital-intensive investments that require pre-feasibility studies, technology assessments, environmental considerations and financial planning, the ministry said.
The request for proposals was issued on 7 July. The scheme, with an outlay of ₹37,500 crore, aims to set up 25 gasification plants over the next three to four years and reduce India’s dependence on imported liquefied natural gas (LNG). It is in addition to the ongoing ₹8,500-crore viability gap funding programme.
Under the scheme, financial incentives of up to 20% of plant and machinery costs will be provided to beneficiaries selected through competitive bidding.
The government aims to promote the conversion of and lignite into higher-value products such as syngas, methanol, ammonia, urea and hydrogen. The synthetic gas produced through gasification can be used in fertiliser production, reducing natural gas imports.
Imports of LNG, urea, ammonia and methanol together stood at about ₹2.77 trillion in FY25. The government aims to achieve 100 million tonnes of coal gasification capacity by 2030, including 75 million tonnes under the scheme.