Coal ministry opens second round of gasification scheme

New Delhi: The government on Tuesday started the second round of application process under the coal gasification scheme and said it received applications for seven projects in the first round, from Adani Enterprises, NTPC, Talcher Fertilisers, Gallantt Ispat and Shyam Sel & Power.

"We expect more companies to apply" in the new round, coal minister G Kishan Reddy said on the sidelines of an event here.

Adani Enterprises submitted three separate proposals for urea production in the first round, application window for which closed on Monday. Talcher Fertilisers also sought support for a urea project.


Gallantt Ispat has proposed a project for direct reduced iron and syngas, while NTPC and Shyam Sel & Power have applied for synthetic natural gas projects.

The scheme, approved by the cabinet in May with a ₹37,500-crore outlay, offers financial support for setting up coal gasification projects, with the aim to scale up production of industrial feedstocks and fuels from domestic coal and cut import dependence for LNG, urea, ammonia and methanol. Together, they accounted for around ₹2.77 lakh crore in imports in FY25.

Coal stock situation

Reddy said India had sufficient coal stock for power plants with overall stock at 123.7 million tonnes. This is sufficient for about 51 days at the current consumption rate of 2.4 mt per day.

There is around 100 mt in transit besides 23.7 mt at thermal power plants.

During April-August, coal supply to power plants increased 4.5% year-on-year to 346.72 mt from 331.70 mt during the same five months in 2025.