Coal Ministry receives 2 applications, only from NTPC, in Round 2 of Rs 37,500-cr coal gasification scheme

New Delhi: The Ministry of Coal received two applications in the second round of its Rs 37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects. Both came from state-run NTPC Limited, the ministry said in a statement on Tuesday. One application proposes to produce urea. The other proposes methanol and dimethyl ether (DME), according to the statement.

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The ministry described the close of the round as “a significant step towards advancing the objectives of the scheme.” It said the two applications highlighted “the potential of coal gasification in supporting domestic production of critical industrial products and diversifying the utilisation of India’s indigenous resources.”

The third round opened on the same day, and applications are due by January 11, 2027. The ministry said the new round would provide “another opportunity for eligible entities to submit proposals for setting up coal/lignite gasification projects in the country.”

Seven applications in the first round

The first round had drawn more applicants. In a statement on September 8, the ministry said it had received seven applications from five companies. NTPC filed one of them, for synthetic natural gas (SNG). Adani Enterprises filed three, all for urea, and Talcher Fertilisers filed one, also for urea. Gallantt Ispat applied for direct reduced iron (DRI) and syngas, while Shyam Sel & Power applied for syngas alone. With its two applications in the second round, NTPC has now filed three applications across the two rounds.

On September 8, the ministry had said the first-round applications would undergo detailed evaluation under the scheme guidelines and the Request for Proposal (RfP). Under the schedule the ministry notified for the second round, it is due to declare the selected applicants from that round on December 22.

Third round open until January 11, 2027

“Building on the progress achieved under the first two rounds,” the ministry said, it launched the third round with effect from November 10. It added that, “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 ministry plans to declare third-round selections on February 23, 2027, according to the schedule it issued on Tuesday. That schedule calls the dates tentative. The third-round RfP said each round after the first “shall be open only to the extent of the residual Financial Outlay remaining after the conclusion of the preceding round.”

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The Union Cabinet approved the scheme on May 13 with an outlay of Rs 37,500 crore, the ministry said. Its stated aim was “to accelerate the development of Surface coal and lignite gasification projects in the country.” Under the RfP, the scheme offers financial incentive of up to 20 percent of a project’s plant and machinery cost.

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