Archive · 4 Sep 2026
India’s ₹37,500-crore Coal Gasification Scheme Draws No Applications
The Indian government offered ₹37,500 crore to encourage companies to turn coal into a useful gas.
This gas can be used to make fuels, fertilizers, hydrogen and chemicals.
The government says this could reduce India’s need to buy some products from other countries.
However, no public or private company had applied for the programme by the reported deadline.
The programme aims to gasify 75 million tonnes of coal and lignite.
The government says the plan could improve energy security and reduce exposure to changing global prices.
The Coal Ministry did not respond to a question about the lack of applications.
The scheme builds on earlier coal-gasification efforts, including a ₹8,500-crore programme approved in 2024.
The ₹37,500-crore government incentive scheme for coal gasification has reportedly received no applications.
The scheme’s September 7, 2026 deadline followed an RFP issued by the Coal Ministry on July 7.
The programme aims to support gasification of 75 million tonnes of coal and lignite.
The Union Cabinet designed the scheme to reduce imports of LNG, urea, ammonia and methanol.
The lack of bids has raised concerns about the viability of the government’s coal gasification push.
- Who
- The Union Cabinet and Coal Ministry launched the incentive scheme; no private or public player had applied, according to sources.
- What
- A ₹37,500-crore financial incentive programme to promote surface coal and lignite gasification reportedly received no applications.
- When
- The RFP was issued on July 7, 2026, with applications due by September 7, 2026; the report was published on September 4, 2026.
- Where
- India.
- Why
- The government aims to promote domestic production of fuels and chemicals, strengthen energy security and reduce dependence on imports and global price volatility.
Government’s Case
Viability Concerns
Energy security and imports
Government’s Case
The government says coal gasification can produce syngas, fuels and chemicals domestically, reducing dependence on imported LNG, urea, ammonia and methanol.
Viability Concerns
The absence of applications from either private or public players raises questions about whether the proposed programme is commercially viable.
Clean-energy objectives
Government’s Case
The scheme is intended to boost clean energy production and the government says gasification can help reduce carbon emissions.
Viability Concerns
The report provides no evidence that companies consider the scheme’s incentives sufficient to proceed, leaving its implementation uncertain.
- Scheme outlay
- ₹37,500 crore
- Target
- Gasification of 75 million tonnes of coal and lignite
- RFP date
- July 7, 2026
- Application deadline
- September 7, 2026
- Earlier programme
- An ₹8,500-crore scheme approved in January 2024
- Earlier projects
- Eight projects worth ₹6,233 crore are under implementation
- Import bill
- Approximately ₹2.77 lakh crore in FY25 for listed substitutable products
- Coal’s energy share
- More than 55% of India’s energy mix
