Adani, NTPC lead bids for India's ₹37,500 Cr coal gasification scheme
India's ₹37,500 crore coal gasification scheme has attracted seven applications in its first round, including three from Adani Enterprises and one from NTPC. This initiative aims to boost domestic energy security, reduce imports, and achieve 100 million tonnes of coal gasification capacity by 2030, expecting investments of ₹2.5-3 lakh crore.
Key Highlights
- Centre's ₹37,500 crore coal gasification scheme receives seven applications.
- Adani Enterprises submitted three proposals, NTPC one, among five companies.
- Scheme targets 100 MT coal gasification capacity by 2030, 75 MT under this scheme.
- Aims to reduce India's dependence on LNG, urea, ammonia, and methanol imports.
- Expected to catalyse investments worth ₹2.5-3 lakh crore, creating employment.
- Second round of applications commenced on September 8, 2026, with bi-monthly windows.
The Indian government's ambitious ₹37,500 crore scheme to promote surface coal and lignite gasification has successfully concluded its first round of applications, receiving an encouraging seven proposals from five major companies. Among the prominent applicants are Adani Enterprises, which submitted three separate bids, and state-run NTPC Ltd, with one application. Other key industrial players that have applied include Gallantt Ispat Ltd, Shyam Sel & Power Ltd, and Talcher Fertilisers Ltd.
The scheme, approved by the Union Cabinet on May 13, 2026, with a substantial financial outlay of ₹37,500 crore, is a critical component of India's broader National Coal Gasification Mission. Its primary objective is to accelerate India's coal and lignite gasification program, aiming to convert domestic coal into higher-value products such as syngas, methanol, ammonia, urea, and hydrogen. This strategic initiative is designed to bolster the nation's energy security and significantly reduce its dependence on imports of crucial commodities like Liquefied Natural Gas (LNG), urea, ammonia, and methanol, which collectively accounted for an import bill of approximately ₹2.77 lakh crore in FY2024-25.
Under the scheme, the government has set an ambitious target of achieving 100 million tonnes (MT) of coal gasification capacity by 2030, with 75 MT specifically to be developed through this new program. The Ministry of Coal anticipates that this initiative will catalyse significant investments ranging from ₹2.5 to ₹3 lakh crore across the value chain and create substantial direct and indirect employment opportunities.
The Request for Proposal (RFP) for the scheme was issued on July 7, 2026, and the first application window closed on September 7, 2026. The overwhelming response, including applications from some of India's largest industrial houses and public sector undertakings, has been viewed by the Ministry of Coal as a strong vote of confidence in the scheme and India's coal gasification mission. Following the evaluation of these initial proposals, the second round of applications commenced on September 8, 2026, with subsequent application windows scheduled to open at two-month intervals to provide ongoing opportunities for eligible entities.
Specifically, Adani Enterprises has proposed three projects, all focusing on urea production. NTPC's application is for a synthetic natural gas (SNG) project. Gallantt Ispat has applied for a project to produce direct reduced iron (DRI) and syngas, while Shyam Sel & Power Ltd has proposed a syngas project. Talcher Fertilisers Ltd is another applicant, also proposing a urea project.
This new scheme builds upon an earlier ₹8,500 crore financial incentive program approved in January 2024, under which eight gasification projects are already in various stages of implementation. The government aims to offer financial incentives of up to 20% of the eligible cost of plant and machinery, subject to prescribed ceilings, to successful bidders selected through a transparent and competitive process. Experts believe that the participation of major players like Adani and NTPC signifies a growing industry recognition of coal gasification as a serious industrial investment proposition, moving beyond a purely policy-driven initiative. This long-term vision, supported by robust policy frameworks and financial incentives, underscores India's commitment to leveraging its vast coal reserves for sustainable energy and industrial growth, fostering self-reliance under the 'Atmanirbhar Bharat' initiative.
Frequently Asked Questions
What is the Centre's ₹37,500 crore coal gasification scheme?
The scheme, approved by the Union Cabinet in May 2026, is a ₹37,500 crore initiative by the Indian government to promote surface coal and lignite gasification projects. Its goal is to convert domestic coal into higher-value products like syngas, methanol, ammonia, urea, and hydrogen, thereby enhancing energy security and reducing imports.
Which major companies have applied for the coal gasification scheme?
In the first round, seven applications were received from five companies. Key applicants include Adani Enterprises (with three proposals for urea production) and state-run NTPC Ltd (for a synthetic natural gas project). Other applicants are Gallantt Ispat Ltd, Shyam Sel & Power Ltd, and Talcher Fertilisers Ltd.
What are the main objectives of India's coal gasification mission?
The mission aims to achieve 100 million tonnes of coal gasification capacity by 2030, with 75 million tonnes under this specific scheme. Its objectives include reducing India's dependence on imports of LNG, urea, ammonia, and methanol, strengthening energy security, and catalyzing significant investments of ₹2.5-3 lakh crore in industrial development and employment generation.
When were the applications invited and what is the status of future rounds?
The Request for Proposal (RFP) was issued on July 7, 2026, and the first application window closed on September 7, 2026. The second round of applications opened on September 8, 2026, with subsequent application windows scheduled to open every two months to encourage continued participation from eligible entities.
