Round 1 of Scheme for Promotion of Surface Coal/Lignite Gasification Projects Receives Seven Applications
8th September 2026
Ministry of Coal has announced that the Round 1 of the Rs 37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has closed to an overwhelming response from industry, with seven (7) applications received from some of India`s largest corporate houses and premier public sector undertakings, decisively vindicating the Ministry's confidence in the scheme
The response underscores growing industry confidence in coal gasification as a key pillar of India's energy security, import substitution and industrial development strategy
The applications received under the first round are as follows:
The coal and lignite gasification projects are large-scale, capital-intensive investments that require extensive preparatory work, including pre-feasibility studies, technology assessments, environmental considerations and detailed financial planning. The submission of seven applications within the first round is a testament to the seriousness with which industry has engaged with the scheme since the Request for Proposal was issued on 7 July 2026
These projects have the potential to contribute significantly to the development of a robust domestic coal gasification ecosystem, with eight gasification projects already under implementation under the earlier Rs 8,500 crore Financial Incentive Scheme
Scheme Background
The Scheme for Promotion of Surface Coal/Lignite Gasification Projects was approved by the Union Cabinet on 13th May 2026, with a total financial outlay of Rs 37,500 crore. The scheme is designed to:
- Promote the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, urea and hydrogen
- Reduce India's dependence on imports of LNG, urea, ammonia and methanol, which together accounted for approximately ₹2.77 lakh crore in imports during FY 2024-25
- Support the national objective of achieving 100 million tonnes of coal gasification capacity by 2030, including the development of 75 million tonnes of capacity under the scheme
- Catalyse investments estimated at Rs 2.5-3 lakh crore and generate substantial direct and indirect employment opportunities across the value chain
Road Ahead
Applications received under Round 1 will now undergo detailed evaluation in accordance with the scheme guidelines and the RFP
The Ministry further announced the opening of Round 2 of the scheme from 8 September 2026. In accordance with the RFP, the application windows will continue to open at two-month intervals, providing regular opportunities for eligible entities to participate. Several prospective applicants are presently at advanced stages of project preparation and are expected to submit proposals in forthcoming rounds
The Ministry has said it appreciates the participation of all applicants and their confidence in the scheme. It remains committed to accelerating the development of coal gasification technologies in India, strengthening energy security and import substitution, and positioning the country as a global leader in clean coal technologies
Read:
- Approval of `Scheme for Promotion of Surface Coal/Lignite Gasification Projects` (25th June 2026)
- BCGCL and MCL sign landmark land leasing agreement for Coal to Ammonium Nitrate Project (1st April 2026)
- BHEL Secures Coal Gasification Package for BCGCL Project (8th January 2026)
- BPCL's JV with Coal India Limited for Gasification Project in Maharashtra (18th December 2025)
- CIL and BHEL JVA for Ammonium Nitrate Plant through Coal Gasification (28th February 2024)