The Centre’s ₹37,500 crore scheme to promote coal and lignite gasification has received seven applications from five companies, including Adani Enterprises and state-run NTPC, following the closure of the first application window on September 7, said the Ministry of Coal on Tuesday.
Adani Enterprises has submitted three applications to produce urea. Talcher Fertilisers has also sought support for a urea project. Gallantt Ispat has proposed a project involving production of direct reduced iron (DRI) and syngas, while NTPC has applied for a synthetic natural gas project. Shyam Sel & Power has proposed a syngas production project.
The applications come after the Coal Ministry rejected reports last week that the scheme had failed to attract industry interest, saying such an assessment was premature while the first application window was still open. The Ministry had then confirmed that NTPC and Talcher Fertilisers had submitted applications.
The Union Cabinet approved the scheme in May with a total financial outlay of ₹37,500 crore. It is intended to accelerate the gasification of domestic coal and lignite and encourage their conversion into higher-value products such as syngas, methanol, ammonia and urea.
job creation
The government expects the programme to catalyse ₹2.53 trillion of investments across about 25 projects and create around 50,000 direct and indirect jobs. It has set a target to develop 100 million tonnes of annual coal gasification capacity by 2030, including 75 million tonnes under the ₹37,500 crore scheme.
The initiative is also aimed at reducing India’s dependence on imports of LNG, urea, ammonia and methanol. Imports of these products were worth about ₹2.77 trillion in 2025-26, according to the Ministry.
The seven proposals will now be evaluated against the scheme’s guidelines and the request for proposal. The Ministry has simultaneously opened the second application window from September 8. Under the rolling process, subsequent application windows will open every two months, allowing companies to submit proposals once their projects are sufficiently advanced.
The scheme builds on the National Coal Gasification Mission and an earlier ₹8,500 crore incentive programme approved in January 2024. Eight projects under the earlier programme are currently under implementation.