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EquityWiresynthetic gas production: Government gets 7 applications in phase 1 of INR-375-billion coal gasification scheme
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Government gets 7 applications in phase 1 of INR-375-billion coal gasification scheme

This story was originally published at 14:16 IST on 8 September 2026
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Informist, Tuesday, Sept. 8, 2026

 

--Coal Ministry gets 7 applications for coal gasification project scheme

--Adani Ent, NTPC submit application for coal gasification project scheme

 

NEW DELHI – The coal ministry Tuesday said the scheme for coal and lignite gasification projects received seven submissions from major Indian companies, including public sector undertakings, in the first round of applications. Under the scheme for promotion of surface coal and lignite gasification projects, which has an outlay of INR 375 billion, the government is offering coal and lignite mines to companies who are interested in extracting synthetic gas from coal via a thermochemical process as part of the country's move to promote clean energy use.

 

The coal ministry said Adani Enterprises Ltd. applied for three projects for urea as an end-product, Gallant Ispat Ltd. applied for direct reduced iron and synthetic gas products, NTPC Ltd. applied for synthetic natural gas, Shyam Sel & Power Ltd. applied for syngas, and Talcher Fertilisers Ltd. applied for urea.

 

"When we said reports of 'no takers' were premature, we were confident that industry would respond and it has, decisively," a senior official of the Ministry of Coal said. "Seven applications in the very first round...are a clear vote of confidence in the scheme and in India's coal gasification mission."

 

The applications received under Round 1 will now undergo detailed evaluation in accordance with the scheme guidelines and the request for proposal. The ministry has further announced the opening of Round 2 of the scheme from Tuesday. The application windows will continue to open at two-month intervals, providing regular opportunities for eligible entities to participate, the ministry said.

 

SCHEME BACKGROUND

The scheme was approved by the union cabinet chaired by Prime Minister Narendra Modi on May 13 to promote the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, urea and hydrogen. The aimd is to help reduce India's dependence on imports of liquefied natural gas, urea, ammonia, and methanol, which together accounted for nearly INR 2.77 trillion in imports during the financial year 2024-25 (Apr-Mar). 


At 1330 IST, shares of Adani Enterprises traded at INR 2,953.8 apiece on the National Stock Exchange, flat from Monday. Shares of NTPC traded flat at INR 331.6 and shares of Gallant Ispat traded 2% lower at INR 560.35 apiece.  End

 

Reported by Pratyush Kumar

Edited by Shubhayan Bhattacharya

 

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