The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on 13th May 2026, with a total financial outlay of ₹37,500 crore, to accelerate…
The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on 13th May 2026, with a total financial outlay of ₹37,500 crore, to accelerate the development of Surface coal and lignite gasification projects in the country.
In a significant step towards advancing the objectives of the Scheme, the Ministry of Coal today announces the conclusion of Round 2, with two applications received from NTPC Limited. The applications envisage the production of Urea, Methanol and Dimethyl Ether (DME), highlighting the potential of coal gasification in supporting domestic production of critical industrial products and diversifying the utilisation of India's indigenous resources.
The applications received under Round 2 are as follows:
Strategic Significance & Context
Methanol and Dimethyl Ether (DME)
Building on the progress achieved under the first two rounds, the Ministry of Coal has launched Round 3 of the Scheme with effect from 10th November 2026, providing another opportunity for eligible entities to submit proposals for setting up coal/lignite gasification projects in the country. The last date for submission of applications under Round 3 is 11th January 2027. Through successive rounds, the Ministry of Coal aims to encourage wider industry participation, attract investments and accelerate the adoption of coal gasification technologies, contributing towards the national target of achieving 100 million tonnes of coal gasification capacity by 2030.
The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on 13th May 2026, with a total financial outlay of ₹37,500 crore, to accelerate the development of Surface coal and lignite gasification projects in the country.
Operational Milestones & Policy Directives
In a significant step towards advancing the objectives of the Scheme, the Ministry of Coal today announces the conclusion of Round 2, with two applications received from NTPC Limited. The applications envisage the production of Urea, Methanol and Dimethyl Ether (DME), highlighting the potential of coal gasification in supporting domestic production of critical industrial products and diversifying the utilisation of India's indigenous resources.
The applications received under Round 2 are as follows:
Methanol and Dimethyl Ether (DME)
Implementation Framework & Field Oversight
Building on the progress achieved under the first two rounds, the Ministry of Coal has launched Round 3 of the Scheme with effect from 10th November 2026, providing another opportunity for eligible entities to submit proposals for setting up coal/lignite gasification projects in the country. The last date for submission of applications under Round 3 is 11th January 2027. Through successive rounds, the Ministry of Coal aims to encourage wider industry participation, attract investments and accelerate the adoption of coal gasification technologies, contributing towards the national target of achieving 100 million tonnes of coal gasification capacity by 2030.
