Archive · 5 Sep 2026
TFL, NTPC Apply as Coal Gasification Scheme Enters Early Stage
The Indian government wants companies to turn coal and lignite into a gas called syngas.
Syngas can be used to make products such as methanol, ammonia and urea.
Talcher Fertilisers Limited and NTPC have already applied for support under the program.
The Coal Ministry says it is too early to decide how many companies will participate.
The first application period ends on 7 September 2026.
Other companies are still preparing their plans.
The program has ₹37,500 crore available and aims to support nearly 25 projects.
More application rounds will give companies extra time to apply.
Talcher Fertilisers Limited and NTPC Limited have submitted applications under the ₹37,500 crore scheme.
The Coal Ministry said the first application window remains open until 7 September 2026.
The ministry rejected claims that the scheme has received no applicants, calling such an assessment premature.
The scheme targets nearly 25 projects, ₹2.5 lakh crore to ₹3 lakh crore in investment, and 50,000 jobs.
It aims to achieve 100 million tonnes of coal gasification capacity by 2030 through rolling application rounds.
- Who
- Talcher Fertilisers Limited and NTPC Limited have applied; the Coal Ministry is administering the scheme, and Coal Minister G Kishan Reddy has discussed industry participation.
- What
- The government is supporting projects that convert surface coal and lignite into syngas and other higher-value products.
- When
- The Union Cabinet approved the scheme on 13 May 2026; the first application window closes on 7 September 2026.
- Where
- The scheme operates in India; stakeholder roadshows were held in New Delhi, Hyderabad and Mumbai.
- Why
- The initiative aims to increase the use of domestic coal and lignite, produce higher-value products and reduce dependence on imported feedstock.
Coal Ministry’s position
Skeptical reports
Whether the scheme has applicants
Coal Ministry’s position
The ministry says the claim that the scheme has no takers is factually incorrect because Talcher Fertilisers Limited and NTPC Limited have submitted applications.
Skeptical reports
Reports described the ₹37,500 crore scheme as having attracted no applicants at an interim stage.
When participation should be assessed
Coal Ministry’s position
The ministry says participation should be judged after the first application window and subsequent rounds are completed.
Skeptical reports
The early-stage application count was treated by skeptical reports as evidence of limited participation so far.
Why applications may take time
Coal Ministry’s position
The ministry says applicants need time for technology assessments, feedstock arrangements, economic evaluations and detailed project proposals, and expects more applications near the deadline.
Skeptical reports
The extensive preparation required for large gasification projects means some companies have not yet finalised their applications.
- Scheme name
- Scheme for Promotion of Surface Coal/Lignite Gasification Projects
- Financial outlay
- ₹37,500 crore
- Confirmed applicants
- Talcher Fertilisers Limited and NTPC Limited
- First application deadline
- 7 September 2026
- Project target
- Nearly 25 projects
- Capacity target
- 100 million tonnes of coal gasification capacity by 2030
- Employment target
- About 50,000 direct and indirect jobs
- Expected investment
- Approximately ₹2.5 lakh crore to ₹3 lakh crore
