India’s ₹37,500 crore coal gasification scheme draws broad industry interest
India’s Ministry of Coal reported strong participation in a pre-application conference for its ₹37,500 crore surface coal and lignite gasification scheme. The programme targets ₹2.5–3 lakh crore of investment, annual coal use of nearly 75 million tonnes and about 50,000 employment opportunities.
Public and private groups examine the programme
India’s Ministry of Coal has reported broad industry interest in a ₹37,500 crore programme supporting surface coal and lignite gasification projects. Public sector enterprises, private companies, technology providers and prospective applicants participated in a pre-application conference held in New Delhi on 20 July 2026, according to the ministry.
The meeting was chaired by Sanoj Kumar Jha, Additional Secretary at the Ministry of Coal. Officials answered questions about the scheme guidelines and request for proposal, including eligibility requirements, the evaluation method, financial incentives and the application process. The Economic Times, citing PTI, said participation reflected interest among both project developers and providers of the technology needed to convert domestic coal into gas and downstream products.
Government sets investment and capacity targets
The Union Cabinet approved the scheme on 13 May 2026. The Ministry of Coal says the ₹37,500 crore financial allocation is expected to catalyse investment of about ₹2.5–3 lakh crore, support the use of nearly 75 million tonnes of coal each year and create about 50,000 employment opportunities. These are government projections rather than committed project totals, and actual capacity will depend on the proposals selected and subsequently built.
Gasification converts coal or lignite into synthesis gas that can be processed into higher-value products. The programme identifies synthetic natural gas, ammonia, methanol, direct reduced iron, synthetic fuels and chemicals as potential outputs. This creates a prospective market not only for coal producers, but also for engineering contractors, gasification technology suppliers and companies in the fertiliser, steel, fuel and chemical industries.
Applications close in September
The government issued the scheme guidelines on 25 June 2026 and published the request for proposal on 7 July. Applications are due by 7 September 2026 and are scheduled to open on 8 September. The official timetable envisages naming selected applicants on 21 October, issuing letters of award on 4 November and signing project agreements on 4 January 2027. The Ministry of Coal has said these dates are tentative and may change.
The policy is intended to increase the value obtained from Indian coal and lignite while reducing reliance on imported energy and chemical products. The Economic Times linked the initiative to India’s rising bill for critical chemical feedstocks and recent disruption in global supply chains. For prospective developers, however, attendance at the conference is only an early indicator: the strength of the programme will become clearer after applications disclose proposed capacity, technology choices and downstream products. The September deadline is therefore the next material test of whether current interest translates into investable projects.
