NTPC submits two coal gasification project proposals under govt's Rs 37,500 crore scheme

New Delhi [India]: NTPC Limited has submitted two proposals to set up coal gasification projects for producing urea, methanol and dimethyl ether (DME) under the government's Rs 37,500 crore scheme, the Ministry of Coal said on Tuesday.

The ministry also announced the opening of the third round of applications under the scheme from November 10, with January 11, 2027, set as the deadline for submitting proposals.

According to the ministry, the second round of the Scheme for Promotion of Surface Coal/Lignite Gasification Projects concluded with two applications, both submitted by NTPC Limited.


"The applications envisage the production of Urea, Methanol and Dimethyl Ether (DME)," the ministry said in a statement.

Of the two proposals, one is aimed at producing urea, which is widely used in fertilisers, while the other focuses on producing methanol and dimethyl ether, which have applications in the chemical and fuel industries.

The ministry said the proposals highlight the potential of coal gasification in "supporting domestic production of critical industrial products and diversifying the utilisation of India's indigenous resources."

Coal gasification is a process that converts coal into a gas mixture that can be used to manufacture chemicals, fertilisers and fuels, offering an alternative to conventional uses of coal.

The Union Cabinet approved the Rs 37,500 crore scheme on May 13, 2026, to promote surface coal and lignite gasification projects across the country.

The third round will provide another opportunity for eligible companies to submit proposals for setting up such projects.

The ministry said that through successive rounds, it aims to "encourage wider industry participation, attract investments and accelerate the adoption of coal gasification technologies."

The scheme is part of the government's broader efforts to expand coal gasification capacity in India and support domestic production of industrial products.

The ministry said the initiative would contribute towards the national target of achieving 100 million tonnes of coal gasification capacity by 2030.

The release did not specify the investment amounts, proposed locations or production capacities of NTPC's two projects.