Coal Ministry: ₹37,500-crore coal gasification scheme applications under way

The coal gasification scheme: what happened?

India has large coal reserves but imports gas, ammonia and methanol. Gasification turns coal into a gas that can be made into these chemicals at home. The projects are big and slow to prepare, which is why the ministry says early counts mislead.

• Ministry rejected reports that the scheme drew no applications.
• Talcher Fertilisers Limited and NTPC Limited had submitted applications on the portal.
• The first round closed on 7 September 2026; rounds then roll on.
• Expected investment of about ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects.
• About 50,000 direct and indirect jobs expected.

What steps came before the first round?

PIB, 5 Sep 2026.

Why does the Government want gasification?

• The scheme converts domestic coal and lignite into higher-value products.
• Using domestic resources for these products reduces dependence on imported feedstock.
• The ministry links this to India’s energy and economic security.
• Roadshows brought together State Governments, public and private companies, technology providers, investors and financial institutions.

Why do applicants need time?

• They must prepare Pre-Feasibility Reports and assess technology options.
• They must line up coal, lignite and other feedstock.
• They must work out project economics and detailed proposals.

Which constitutional entry is relevant?

• Seventh Schedule, List I, Entry 54: Regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest.

How do the rolling rounds work?

1. A round stays open for applications
2. When it closes, the next round opens the very next day
3. Each later round stays open for two months
4. Firms that need more preparation time can apply later
5. Projects are selected round by round

Why does the coal gasification scheme matter?

What are the challenges in the coal gasification scheme?

• Gasification projects are large, complex and capital-heavy.
• Technology choices and feedstock tie-ups take long to finalise.
• The release does not discuss emissions from coal-based chemicals.

What should be done next on the coal gasification scheme?

• Close later rounds and announce selected projects.
• Help applicants with feedstock linkages.
• Track progress towards 100 million tonnes of gasification by 2030.

What can Prelims ask on the coal gasification scheme?

• Scheme for Promotion of Surface Coal/Lignite Gasification Projects: ₹37,500 crore; Cabinet approval 13 May 2026.
• Products: syngas, methanol, ammonia, urea.
• National target: 100 million tonnes coal gasification by 2030.
• Mines and mineral development: List I, Entry 54.

How to write about the coal gasification scheme in Mains

Practice question (10 marks, 150 words): Coal gasification can reduce India’s import dependence but raises questions of cost and sustainability. Discuss with reference to the 2026 coal gasification scheme.

• Intro: ₹37,500 crore scheme; 13 May 2026.
• Benefits: syngas, methanol, ammonia, urea; import cut.
• Status: TFL, NTPC applied; rolling rounds.
• Concerns: capital, technology, emissions.
• Conclusion: steady rounds and clear linkages.