The Ministry of Coal has invited applications under its Rs 37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, with submissions open until September 7, 2026. The scheme aims to boost cleaner coal utilisation, attract Rs 2.5–3 lakh crore in investments and strengthen India’s energy security.
Key Highlights
- Coal Ministry held a pre-application conference for the Rs 37,500 crore coal gasification scheme.
- Applications for the scheme will be accepted until September 7, 2026.
- The initiative is expected to attract Rs 2.5–3 lakh crore in investments and create 50,000 jobs.
- The scheme will promote production of synthetic natural gas, methanol, ammonia and other value-added products.
New Delhi, July 21: The Ministry of Coal on Monday conducted a pre-application conference for the Rs 37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, providing detailed guidance to prospective applicants on the scheme’s implementation, eligibility criteria and application process. The event witnessed strong participation from public sector enterprises, private companies, technology providers and industry stakeholders, highlighting significant interest in the government’s flagship clean coal initiative.
During the conference, ministry officials explained the scheme guidelines, Request for Proposal (RFP), eligibility conditions, evaluation methodology, financial incentives and submission procedures. Queries raised by participants were addressed comprehensively to facilitate smooth participation in the competitive selection process.
The ministry informed stakeholders that the last date for submitting applications is September 7, 2026, and urged eligible entities to submit proposals within the stipulated timeline to avail the benefits of the scheme.
Approved by the Union Cabinet in May 2026, the Rs 37,500 crore coal gasification scheme aims to accelerate the development of surface coal and lignite gasification projects across the country. The initiative seeks to promote the production of synthetic natural gas (SNG), ammonia, methanol, direct reduced iron (DRI), synthetic fuels and other value-added chemicals, thereby increasing the domestic value addition of India’s abundant coal resources.
According to the ministry, the scheme is expected to catalyse investments of Rs 2.5–3 lakh crore, facilitate the utilisation of around 75 million tonnes of coal annually, and generate approximately 50,000 employment opportunities. It is also expected to reduce India’s dependence on imports of energy and chemical products while supporting the country’s industrial and manufacturing sectors.
The Ministry of Coal has been actively promoting clean coal technologies through international collaborations as well. In June 2026, it organised a BRICS side event highlighting the role of coal gasification in enhancing energy security, industrial development and cleaner utilisation of coal. Coal gasification converts coal into syngas, which can be used to manufacture hydrogen, ammonia, methanol, synthetic fuels, DRI and several industrial chemicals.
The Rs 37,500 crore coal gasification scheme marks a major step in India’s strategy to promote cleaner coal utilisation and reduce import dependence. By encouraging large-scale investments, advanced technologies and domestic production of high-value chemicals and fuels, the initiative is expected to strengthen the country’s energy security and industrial competitiveness.
