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The Ministry of Coal will open the applications received under its Rs 37,500-crore financial incentive scheme for promotion of surface coal and lignite gasification on Tuesday, providing the first indication of industry participation in the Centre’s flagship programme aimed at scaling up domestic coal gasification.
The applications will be opened at 10:30 am on September 8 in New Delhi, following the closure of the first application window on September 7. The opening will cover both applications submitted online through the MSTC portal and physical applications submitted to the Ministry of Coal.
The number and profile of applicants in the first round will be closely watched after the ministry last week rejected media reports that the scheme had failed to attract interest from industry. On September 5, the ministry said such reports were “premature” and did not reflect the status of the application process.
The ministry had disclosed that Talcher Fertilisers Ltd (TFL) and NTPC Ltd had already submitted their applications through the online portal. It also said it was in communication with other prospective applicants who were at various stages of project preparation and application finalisation.
The opening of the applications on Tuesday will therefore provide the first formal indication of how many companies have come forward in the first round and the extent of industry interest in a scheme that seeks to mobilise large investments in coal-to-chemicals and other value-added products.
The scheme was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of Rs 37,500 crore. It is aimed at accelerating coal and lignite gasification in India and converting domestic resources into higher-value products such as syngas, methanol, ammonia and urea.
The government expects greater use of domestic coal and lignite for these products to reduce dependence on high-value imported feedstock and strengthen India’s energy and economic security.
The Ministry of Coal issued the Request for Proposal (RFP) on July 7, following which the online application portal was launched. A pre-application conference was held on July 20 to address questions from prospective applicants regarding eligibility, provisions of the scheme and the application process.
The government had also undertaken industry outreach through roadshows in New Delhi, Hyderabad and Mumbai between May and June, involving state governments, public and private sector companies, technology providers, investors and financial institutions.
The Centre expects the scheme to catalyse Rs 2.5 lakh crore to Rs 3 lakh crore of investment across nearly 25 projects and generate around 50,000 direct and indirect employment opportunities.
The programme is also intended to support the government’s broader target of achieving 100 million tonnes of coal gasification capacity by 2030.
The government has, however, designed the scheme with multiple application opportunities rather than making the September 7 deadline a one-time cut-off. Under the rolling application mechanism, the next application round will open from the day after the first round closes and remain open for two months.
The ministry had said this mechanism is necessary given the scale and complexity of the projects envisaged. Prospective developers are required to undertake substantial preparatory work, including preparing pre-feasibility reports, evaluating technology options, arranging coal, lignite and other feedstock, assessing project economics and preparing detailed proposals.
The ministry had expressed confidence that the scheme would receive sustained industry participation.
