The government has given impetus to its large-scale program for the gasification of coal and lignite by announcing a Request for Proposals (RFP) on Wednesday. This competition invites companies to implement projects under an incentive scheme valued at 37,500 crore rupees.
The scheme was launched in May and aims to support the gasification of 75 million tonnes of coal and lignite by 2030. The goal is to produce synthesis gas, which will reduce dependence on imports of LNG, urea, ammonia, and methanol, and also contribute to achieving self-sufficiency in the energy and chemical sectors.
According to official data, companies participating in this scheme are expected to be selected within the next four months. The issuance of the RFP followed the Cabinet's approval of the scheme in May, and the Ministry of Coal published operational guidelines on June 25.
To ensure the participation of stakeholders and clarify the scheme's provisions and application procedures, the ministry will hold a preliminary conference on July 20.
Currently, India imports almost 85% of its crude oil requirements, about 90% of its methanol needs, and 13–15% of its ammonia requirement. The country's import expenditure on key substitute products, including liquefied natural gas, urea, ammonium nitrate, ammonia, coking coal, methanol, and dimethyl ether (DME), amounted to nearly 2.8 lakh crore rupees in the fiscal year 25.
Dimethyl ether is considered a promising alternative with cleaner combustion compared to LPG; Indian standards have already permitted blends containing up to 20% for domestic, commercial, and industrial use.
The government anticipates that this scheme will attract investments of 2.5–3 lakh crore rupees across approximately 25 projects in coal-rich regions to gasify 75 million tonnes of coal over the next five years.
