Major Indian public and private sector players, including NTPC Limited and Adani Enterprises Limited, have submitted applications under the first round of the ambitious ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects.
The Ministry of Coal announced that five entities participated in the initial bidding phase, aimed at fostering domestic coal gasification capabilities. Following this, the government has launched a second bidding round, which will remain open for the next two months, inviting further proposals.
Key Applicants and Their Projects
- NTPC Limited: Applied for projects focused on converting coal into Synthetic Natural Gas.
- Adani Enterprises Limited: Submitted applications for three distinct projects centered on urea production.
- Gallantt Ispat Limited: Proposed projects for Direct Reduced Iron and Syngas.
- Shyam Sel & Power Limited: Applied for syngas production.
- Talcher Fertilisers Limited: Also sought to develop urea projects.
The Ministry of Coal clarified earlier reports suggesting a lack of interest in the scheme, stating that numerous prospective applicants are in advanced stages of project preparation and are expected to submit proposals in subsequent rounds.
Boosting Energy Security and Reducing Imports
This initiative is a critical component of India's strategy to enhance energy security and reduce its substantial import dependence, a focus sharpened by global events like the West Asia conflict. Coal gasification is identified as a key pillar for import substitution and industrial development.
These large-scale, capital-intensive projects require extensive preparatory work, including pre-feasibility studies, technology assessments, environmental considerations, and detailed financial planning. The scheme is designed to facilitate the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, urea, and hydrogen.
The broader objective is to significantly reduce India's reliance on imported LNG, urea, ammonia, and methanol, which collectively accounted for approximately ₹2.77 lakh crore in imports during the fiscal year 2024-25. The current scheme builds upon the success of an earlier ₹8,500 crore financial incentive scheme under the National Coal Gasification Mission, which already has eight gasification projects under implementation.