Centre Seeks Proposals for Coal Gasification Projects Under Rs 37,500 Crore Scheme

The Ministry of Coal has invited applications under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, approved by the government in May this year with a total financial outlay of Rs 37,500 crore, according to an official statement issued on Wednesday.

The scheme is a major initiative aimed at promoting surface coal and lignite gasification projects, thereby enhancing value addition, reducing import dependence, and supporting India's vision of achieving greater self-reliance in the energy and chemical sectors.

After the approval of the scheme, the guidelines were issued on June 25, followed by the publication of the Request for Proposal (RFP) on July 7, inviting eligible applicants to submit proposals.

To facilitate stakeholder participation and provide clarity on the Scheme provisions and the application process, the Ministry will hold a pre-application conference on July 20. Prospective applicants and other stakeholders are encouraged to participate in the conference and submit their queries for clarification, the statement said.

The last date for submission of applications is September 7.

The Scheme Guidelines, Request for Proposal (RFP), and the detailed application timeline are available on the Ministry of Coal website. Interested entities are encouraged to review the documents.

Coal gasification is a transformative technology that converts coal into synthesis gas (syngas), which can be further utilised for the production of value-added products such as methanol, ammonium nitrate, synthetic natural gas, and a range of industrial chemicals. Recognising its strategic importance, the government has undertaken several policy initiatives and incentive measures to promote coal gasification as a means to enhance energy security, reduce import dependence, and diversify the utilisation of domestic coal resources.

The government conducted roadshows on coal gasification in June in Delhi and Hyderabad, during which discussions were held with stakeholders on policy support, technological innovations, investment opportunities, and project implementation strategies. The platform brought together policymakers, industry leaders, technology providers, and investors to explore collaborative pathways for accelerating the development of coal and lignite gasification projects across the country.