Coal ministry rebuts 'no takers' reports on Rs 37,500 crore gasification scheme, confirms TFL, NTPC applications

The coal ministry has pushed back against reports claiming its Rs 37,500 crore coal gasification incentive scheme has failed to attract any applications, saying such reports are premature and do not reflect the actual status of the scheme.

In a statement issued on September 5, the ministry said Talcher Fertilisers Limited (TFL) and NTPC Limited have already submitted their applications through the online portal under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects. This, the ministry said, contradicts claims that the scheme has received "no takers."

Also read: Government's Rs 37,500-cr coal gasification scheme fails to attract bids


The ministry also pointed out that the first-round application window closes only on September 7, and that the number of applications received cannot be conclusively assessed while the window remains open.

Scheme background

The scheme was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of ₹37,500 crore. It aims to accelerate the development of coal and lignite gasification in the country by promoting the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia and urea, reducing dependence on imported feedstock.

Following the scheme's approval, the ministry conducted outreach through roadshows in New Delhi on May 28, Hyderabad on June 11, and Mumbai on June 18, bringing together state governments, public and private companies, technology providers, investors and financial institutions.

The Request for Proposal (RFP) under the scheme was issued on July 7, after which the online application portal was launched. A pre-application conference was held on July 20 to address queries from prospective applicants on eligibility and process-related matters.

The ministry noted that given the scale of the projects involved, applicants require substantial preparatory work, including pre-feasibility reports, technology assessments, feedstock arrangements and project economics evaluations, and said additional applications are expected as the deadline nears.

Rolling application rounds

The scheme has been structured with rolling application rounds. Once one round's window closes, the next round opens the following day and remains open for two months, allowing companies that need more preparation time to participate in later rounds.

Also read: India steps up coal supplies to power plants amid rising demand and falling stocks

The ministry said it expects the scheme to catalyse investments of ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects and generate around 50,000 direct and indirect jobs. It is also expected to contribute to the government's target of achieving 100 million tonnes of coal gasification capacity by 2030.

The current scheme builds on the National Coal Gasification Mission launched in 2021 and an earlier ₹8,500 crore scheme approved in January 2024, under which eight projects worth ₹6,233 crore are currently under implementation.

India's import bill for key substitutable products such as LNG, urea, ammonium nitrate, ammonia, coking coal and methanol stood at approximately ₹2.77 lakh crore in FY25, a dependence the government has flagged as a vulnerability amid ongoing geopolitical tensions in West Asia.