Government's Coal Gasification Push Gains Momentum with Rs 37,500 Crore Initiative

The Indian government's substantial Rs 37,500 crore scheme for coal and lignite gasification has attracted seven applications in its first phase, three from Adani Enterprises. Covering projects like urea and syngas, this initiative promises to boost domestic coal utilization and reduce import reliance, while fostering significant investment.

The Indian government's Rs 37,500 crore initiative aimed at promoting coal and lignite gasification has garnered significant attention, with the first round receiving seven applications, including three from Adani Enterprises. Other applicants include Gallantt Ispat, NTPC, Shyam Sel & Power, and Talcher Fertilisers, targeting projects spanning urea, direct reduced iron, syngas, and synthetic natural gas.

The submission deadline for the first phase concluded after the Request for Proposal was issued on July 7, 2026. According to the Ministry of Coal, these projects will undergo a detailed evaluation in line with scheme guidelines, as the government seeks to enhance its coal gasification mission.

This initiative, ratified by the Union Cabinet on May 13, 2026, aims to achieve 100 million tonnes of coal gasification capacity by 2030, contributing to reduced reliance on imported resources. The scheme is anticipated to drive investments worth Rs 2.5-3 lakh crore, subsequently fostering employment across the sector. The next application round opens on September 8, with submissions recurring every two months.