The Coal Ministry has rejected media reports suggesting that the Central Government scheme worth Rs 37,500 crore, aimed at developing surface gasification of coal and lignite, has failed to attract applicants. The Ministry emphasized that such conclusions are premature, as the first application period will run until September 7.
The Ministry reported that companies Talcher Fertilisers Limited (TFL) and NTPC Limited have already submitted their applications through the online portal. Furthermore, other potential participants are at various stages of project preparation and finalizing their proposals.
The Ministry stated that the assertion that the Scheme has received no applications is factually incorrect. It added that the final assessment of the number of applications received in the first round can only be made after the closing of the application period on September 7.
This clarification followed media publications suggesting that the scheme had not attracted applications, despite government efforts to promote coal gasification. The Ministry noted that the scheme is in an early stage of implementation, and assessing its success based on the current status of applications before the first window closes would be premature.
The Scheme was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of Rs 37,500 crore. Its objective is to accelerate the gasification of coal and lignite, promoting the transformation of domestic coal and lignite into higher value-added products such as synthesis gas, methanol, ammonia, and urea.
To encourage participation from potential developers, projects were presented at roadshows in New Delhi, Hyderabad, and Mumbai since the scheme's approval. The Request for Proposals was issued on July 7, after which the online application portal was launched. A preliminary conference was held on July 20 to answer questions regarding compliance requirements and the application process.
The Ministry also pointed out that the preparation of such projects is a significantly lengthy process. Potential applicants need to prepare preliminary feasibility reports, evaluate technological options, identify sources of coal, lignite, and other raw materials, conduct economic viability assessments, and compile detailed project proposals.
It is important to note that September 7 is not the only chance for companies to participate. The Scheme provides for a round-based application system: the next round opens the day after the previous one closes and remains open for two months. This mechanism, according to the Ministry, is designed so that companies requiring additional time to prepare a project are not excluded from the scheme.
The Government expects this initiative to catalyze investments of approximately Rs 2.5 to 3 trillion across about 25 projects, while also creating around 50,000 direct and indirect jobs. Additionally, it is anticipated that this initiative will contribute to the government's broader goal of achieving a coal gasification capacity of 100 million tonnes by 2030, while reducing dependence on imported raw materials by increasing the use of domestic coal and lignite for producing value-added products.
The Ministry concluded that the participation and success of the scheme should be evaluated after the completion of the established application process and subsequent rounds, rather than based on an interim assessment while the first application period is open.