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Adani, NTPC among 5 applicants for ₹37,500-cr coal gasification scheme | Economy & Policy News


The Centre’s ₹37,500-crore scheme to promote surface coal and lignite gasification has received seven project applications from five companies, including NTPC and Adani Enterprises, the Ministry of Coal said on Tuesday.

 

The other applicants include Talcher Fertilisers, Adani Enterprises, Gallantt Ispat and Shyam Sel & Power.

 

Adani Enterprises has submitted three separate applications for projects to produce urea. Talcher Fertilisers has also sought support for a urea project. Gallantt Ispat has proposed a project to produce 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 coal ministry opened the application process in July, with the first round closing on September 7.

 

Scheme aims to boost domestic production

 

The Union Cabinet approved the scheme in May this year, with a total financial outlay of ₹37,500 crore. It seeks to promote the gasification of coal and lignite and turn domestic resources into higher-value products such as syngas, methanol, ammonia and urea.

 

The initiative is aimed at reducing India’s dependence on imports of liquefied natural gas (LNG), urea, ammonia and methanol. These products accounted for imports worth around ₹2.77 trillion in FY25.

 

The government expects the scheme to attract ₹2.5-3 trillion in investment across 25 projects and create around 50,000 direct and indirect jobs. It also plans to build 100 million tonnes of coal gasification capacity by 2030. Of this, 75 million tonnes is expected to be developed under the ₹37,500-crore scheme.

 

The programme builds on the National Coal Gasification Mission and the ₹8,500-crore financial incentive scheme approved in January 2024. Eight projects under the earlier scheme are currently under implementation.

 

What happens after the first round?

 

The applications submitted in the first round will now be reviewed based on the scheme’s guidelines and the Request for Proposal (RFP).

 

The coal ministry opened the second application round on September 8. Under the rolling application process, new windows will be opened every two months. This will allow companies to submit their proposals when their projects are sufficiently prepared to meet the scheme’s requirements.



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