The first application window under the Centre’s ₹37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects will close on September 7, 2026, according to the Ministry of Coal. The government has clarified that reports suggesting the scheme has received no applications are premature, as the first application round remains open until the deadline.
₹37,500 Crore Scheme
The Union Cabinet approved the scheme on May 13, 2026, with a total financial outlay of ₹37,500 crore. It is aimed at accelerating coal and lignite gasification in India and encouraging the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia and urea.
The government expects greater use of domestic resources to help reduce dependence on imported feedstock while strengthening energy and economic security.
First Application Round
The Ministry of Coal issued the Request for Proposal on July 7, 2026, following which an online portal was opened for applications. A pre-application conference was subsequently held on July 20 to address questions related to eligibility, scheme provisions and the application process.
The deadline for the first round has been fixed for September 7. The ministry said it would therefore be premature to assess the final number of applications before the application window closes.
TFL and NTPC Already Applied
The ministry has also stated that Talcher Fertilisers Limited (TFL) and NTPC Limited have already submitted applications through the online portal. This contradicts claims that the scheme has received no applications.
Other prospective applicants are reportedly at different stages of preparing their project proposals.
More Rounds to Follow
Companies that are unable to complete their preparations for the first round will have additional opportunities. The scheme has been designed with a rolling application mechanism, under which a subsequent application round will open from the day after the previous round closes and remain open for two months.
This arrangement is intended to give potential developers more time to prepare pre-feasibility reports, assess technology options, arrange coal or lignite feedstock and evaluate project economics.
Investment and Employment Potential
According to the Ministry of Coal, the initiative is expected to catalyse investments of approximately ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects. It could also generate around 50,000 direct and indirect employment opportunities.
The scheme is also linked to the government’s broader objective of achieving 100 million tonnes of coal gasification capacity by 2030.
What Happens After September 7?
September 7 is therefore not the final opportunity for participation in the scheme. It marks the closing date of the first application round. Additional rounds are planned, allowing companies that need more time for technical and financial preparations to participate later.
The Ministry of Coal has said the scheme remains at an early stage and that its participation should be assessed after completion of the application process rather than through interim claims about the number of applicants.
