Adani Enterprises, NTPC and Others Among 7 Applicants in First Round of Coal Gasification Scheme

As per a PIB announcement dated September 8, 2026, the first round of the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has received seven applications from companies and public sector undertakings. 

Adani Enterprises Limited has submitted three applications, all for urea projects. The other applicants are Gallantt Ispat Limited, NTPC Limited, Shyam Sel & Power Limited, and Talcher Fertilisers Limited. 

Details of the Projects 

Gallantt Ispat has applied for a project to produce direct reduced iron (DRI) and syngas, while NTPC has submitted an application for synthetic natural gas. 

Shyam Sel & Power has applied for a syngas project, and Talcher Fertilisers has submitted a proposal for urea. The seven applications were made after the Request for Proposal (RFP) was issued on 7 July 2026. 

Scheme Approved in May 

The Union Cabinet approved the coal gasification scheme on 13 May 2026 with a total financial outlay of ₹37,500 crore. 

The scheme covers the conversion of domestic coal and lignite into products including syngas, methanol, ammonia, urea, and hydrogen. It also aims to reduce imports of LNG, urea, ammonia, and methanol. 

These four products accounted for approximately ₹2.77 lakh crore of imports during FY 2024-25. 

Capacity and Investment 

The government has set a target of achieving 100 million tonnes of coal gasification capacity by 2030. The scheme is intended to support the development of 75 million tonnes of capacity. 

Investment linked to the scheme is estimated at ₹2.5-3 lakh crore. The government also expects the projects to create direct and indirect employment across the value chain. 

Earlier Scheme Has Eight Projects 

The initiative follows the ₹8,500 crore Financial Incentive Scheme approved in January 2024. Eight coal gasification projects are currently under implementation under the earlier scheme. 

Coal and lignite gasification projects require preparatory work covering pre-feasibility studies, technology assessments, environmental considerations, and financial planning. 

Round 2 Opens 

Applications from the first round will now undergo evaluation under the scheme guidelines and RFP. 

The second round opened on 8 September 2026. As set out in the RFP, application windows will open at two-month intervals, allowing eligible entities to submit proposals in subsequent rounds. 

Read More: Government Keeps PSB Employee PLI Scheme on Hold For 2025-26 Amid Union Concerns! 

Conclusion  

The first round received seven applications covering urea, DRI, syngas and synthetic natural gas projects. The proposals will now be evaluated under the scheme guidelines. 

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