New Delhi: NTPC Limited has submitted two applications under Round 2 of the ₹37,500 crore coal gasification scheme. The proposals envisage producing Urea, Methanol and Dimethyl Ether (DME). Meanwhile, the Ministry of Coal has opened Round 3 from November 10, inviting fresh proposals until January 11, 2027.
The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on May 13, 2026. It carries a total financial outlay of ₹37,500 crore. The initiative aims to accelerate surface coal and lignite gasification projects across the country.
Both applications under Round 2 came from NTPC Limited. One proposal focuses on Urea production. The other envisages manufacturing Methanol and Dimethyl Ether (DME). These applications highlight the potential of coal gasification to support domestic industrial production. They also seek to diversify the utilisation of India’s indigenous resources.
Coal gasification scheme enters its third application round
Building on the progress of the first two rounds, the Ministry of Coal has launched Round 3. Eligible entities can now submit proposals for establishing coal and lignite gasification projects. The application window will remain open until January 11, 2027.
Through successive rounds, the Ministry aims to encourage broader industry participation. Additionally, it seeks to attract investments and accelerate the adoption of gasification technologies. The initiative is expected to contribute towards India’s national target of achieving 100 million tonnes of coal gasification capacity by 2030.
The latest applications also underline the potential role of coal gasification in producing critical industrial materials. Urea, Methanol and DME are among the products envisaged under NTPC’s proposals. Their production could support greater domestic utilisation of India’s coal and lignite resources.
