Coal ministry invites applications under gasification projects

New Delhi: The coal ministry on Thursday floated a request for proposal (RFP) inviting applications for financial incentives under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, which was recently cleared by the cabinet with a financial outlay of ₹37,500 crore.

The aim is to support coal gasification projects with a target of 100 million tonnes by 2030.

Projects producing syngas and downstream products such as methanol, ammonia, urea, synthetic natural gas, hydrogen and dimethyl ether will be eligible for the support.


Under the RFP, companies can receive financial incentives of up to 20% of the cost of plant and machinery, subject to a cap of ₹5,000 crore per project.

The scheme caps incentives for any applicant and its group companies at ₹12,000 crore across projects.

The applicant or consortium must have a net worth of more than 20% of the project cost.

Projects must be new coal or lignite gasification facilities with a minimum clean syngas production capacity of 500,000 tonnes per year.

The ministry said selected projects will receive incentives in four equal instalments linked to predefined milestones, while developers will remain responsible for fuel sourcing and product offtake.