Adani, NTPC among 7 applicants for Rs 37,500 crore coal gasification scheme

India’s coal gasification scheme has got seven applications in its first round, including three proposals from Adani Enterprises, apart from NTPC, Talcher Fertilisers, Gallantt Ispat and Shyam Sel & Power.

The scheme was approved by the Cabinet in May with a Rs 37,500 crore financial outlay with the aim to scale up coal gasification to produce industrial feedstocks and fuels from domestic coal and cut import dependence.

Adani Enterprises has submitted three separate applications for urea production. Gallantt Ispat, on the other hand, has proposed a project for direct reduced iron and syngas, while NTPC has applied for a synthetic natural gas project.


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Shyam Sel & Power has also proposed syngas production while Talcher Fertilisers has sought support for a urea project.

The coal ministry had opened the application process in July and the first round of applications closed on September 7.

The scheme intends to cut India's dependence on imports of LNG, urea, ammonia and methanol, which accounted for around Rs 2.77 lakh crore in imports in FY25.

It also supports the objective of achieving 100 million tonnes of coal gasification capacity by 2030, including the development of 75 million tonnes of capacity under the scheme.

The scheme could catalyse investments estimated at Rs 2.5-3 lakh crore.

The scheme builds on the National Coal Gasification Mission and the Rs 8,500 crore scheme approved in January 2024, under which eight projects are currently under implementation.

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The coal and lignite gasification projects are large-scale, capital-intensive investments that require extensive preparatory work, including pre-feasibility studies, technology assessments, environmental considerations and detailed financial planning.