Coal Gasification Scheme Worth ₹46,000 Crore to Boost Large-Scale Projects, Says Union Minister Kishan Reddy

The Ministry of Coal has outlined the next steps for implementing the ₹46,000 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, with the Draft Request for Proposal (RFP) placed in the public domain for stakeholder feedback, as per PTI news report.
The developments were highlighted during a roadshow attended by industry participants, technology providers, and financial institutions.
Draft RFP Released for Industry Feedback
Addressing the event, Vikram Dev Dutt, Secretary, Ministry of Coal, said the Draft RFP had been made public as previously committed and invited stakeholders to share their comments and suggestions.
The presentation at the roadshow covered eligibility criteria, bidding methodology, incentive structure, coal linkage provisions, project milestones, evaluation parameters and participation timelines.
Representatives from industry, financial institutions and technology providers also participated in an interactive session on project financing, infrastructure, coal availability and technology partnerships.
Minister Highlights Coal Resources and Gasification Plans
Speaking at the event, Union Coal Minister G Kishan Reddy said, “We have coal in abundance, we have policy support, and we have commitment. Coal gasification will become a new driver of industrial growth and Atmanirbhar Bharat.”
He stated that India has nearly 400 billion tonnes of coal reserves, the fifth largest in the world, and noted that the country is the world’s second largest producer and consumer of coal. According to the minister, around 70% of India’s electricity generation depends on coal.
Reddy also said coal gasification can be used to convert domestic coal into value-added products such as methanol, ammonia, fertiliser feedstocks and other industrial chemicals.
Roadshow Showcases Indigenous Technologies
The event included technology presentations by BHEL and CIMFR, which showcased indigenous coal gasification technologies.
According to Dutt, the approved scheme is supported by central assistance, state incentives, assured coal linkages and downstream infrastructure.
He also invited industry, technology providers, and financial institutions to contribute inputs towards the final implementation framework.
Conclusion
With the Draft RFP now available for public feedback, the Ministry of Coal has initiated the stakeholder consultation process for the ₹46,000 crore coal gasification scheme, while roadshow discussions covered bidding, incentives, project milestones and technology-related aspects of the programme.
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Published on: Jun 12, 2026, 2:30 PM IST

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