Coal Ministry pushes ₹37,500 crore gasification scheme

The Ministry estimates that the scheme could attract ₹2.5 lakh crore to ₹3 lakh crore in investments while enabling the utilisation of nearly 75 million tonnes of coal every year.

The Ministry of Coal has held a pre-application conference for its ₹37,500 crore Coal and Lignite Gasification Promotion Scheme, allowing prospective applicants to seek clarifications on the application process and encouraging wider industry participation in one of India's largest clean coal initiatives.

The meeting, chaired by Additional Secretary Sanoj Kumar Jha, brought together representatives from public sector enterprises, private companies, technology providers and other potential applicants, highlighting strong interest in the government's plan to expand coal gasification projects across the country.

Industry receives guidance on application process

During the conference, ministry officials explained the scheme's guidelines and the Request for Proposal (RFP), providing detailed information on eligibility requirements, evaluation criteria, financial incentives and the application process. Officials also addressed questions raised by participants to help ensure that companies have a clear understanding of the scheme before submitting their proposals. The Ministry reminded interested organisations that applications must be submitted by 7 September 2026.

Scheme aims to expand cleaner use of domestic coal

Approved by the Union Cabinet on 13 May 2026, the ₹37,500 crore scheme is designed to promote surface coal and lignite gasification projects, enabling coal to be converted into higher-value products instead of being used only for conventional combustion.

The programme will support the production of synthetic natural gas, ammonia, methanol, direct reduced iron (DRI), synthetic fuels and a range of industrial chemicals, helping create new value chains based on India's domestic coal resources.

Major investment and employment expected

The Ministry estimates that the scheme could attract ₹2.5 lakh crore to ₹3 lakh crore in investments while enabling the utilisation of nearly 75 million tonnes of coal every year. It is also expected to generate around 50,000 jobs and reduce India's dependence on imported energy products and industrial chemicals, strengthening domestic manufacturing and improving energy security. The government said the initiative forms part of its broader strategy to promote cleaner and more efficient use of India's coal reserves while supporting industrial growth and long-term economic development.