New Delhi: The Ministry of Coal rejected reports that the coal gasification scheme had received no applications. It said such claims were premature because the first application window remained open until 7 September 2026.
The Ministry issued the clarification on 5 September 2026. It said the reports did not reflect the actual application status.
The Union Cabinet approved the coal gasification scheme on 13 May 2026. The programme carries a total financial outlay of ₹37,500 crore.
The scheme aims to expand coal and lignite gasification in India. It also promotes domestic coal conversion into syngas, methanol, ammonia and urea.
The government expects greater use of domestic resources to reduce imported feedstock needs. It also seeks to strengthen India’s energy and economic security.
Following approval, the Ministry began outreach among potential project developers. It held roadshows in New Delhi on 28 May, Hyderabad on 11 June and Mumbai on 18 June 2026.
State Governments, public and private companies, technology providers and investors joined the events. Financial institutions and other stakeholders also participated.
The Union Minister of Coal and Mines and senior officials attended the roadshows. Meanwhile, the Ministry continued discussions with interested companies.
The Ministry issued the Request for Proposal on 7 July 2026. It then opened the online portal for applications.
A pre-application conference followed on 20 July 2026. Potential applicants sought clarification on scheme provisions, eligibility and the application process.
The first-round deadline is 7 September 2026. Therefore, the Ministry said officials cannot yet assess the final number of applications.
Any claim that the scheme has no applicants is thus premature. The Ministry said the application window remains open.
Coal gasification scheme draws two applications
The Ministry said Talcher Fertilisers Limited (TFL) and NTPC Limited had submitted applications through the online portal. Their applications directly counter claims that the coal gasification scheme has “no takers”.
Officials also remain in contact with other prospective applicants. Several companies are preparing projects and finalising their proposals.
Large gasification projects require extensive preparation. Applicants must prepare Pre-Feasibility Reports and assess technology options.
They must also arrange coal, lignite and other feedstock. In addition, companies must assess project economics and prepare detailed proposals.
The Ministry expects more applicants to submit proposals as the deadline approaches. It also stressed that companies have several opportunities to participate.
The application process will run through rolling rounds. After one round closes, another will open the next day for two months.
This system gives companies more time to complete project preparation. It also reflects the scale of investment needed for gasification projects.
The government expects the scheme to attract ₹2.5 lakh crore to ₹3 lakh crore in investment. It estimates that nearly 25 projects could emerge from the programme.
The initiative could also create around 50,000 direct and indirect jobs. Further, it supports the government’s target of 100 million tonnes of coal gasification capacity by 2030.
The Ministry said the scheme remains at an early implementation stage. It urged stakeholders to assess participation only after the application process advances.
The first window remains open until 7 September 2026. Subsequent rounds will offer further opportunities to eligible companies.
The Ministry therefore rejected the description of the scheme as having “no takers”. It said the government expects sustained industry participation.
The initiative aims to boost coal and lignite gasification in India. It also seeks to increase domestic production of higher-value products and reduce imported feedstock dependence.
