The government has debunked claims that the Scheme for Promotion of Surface Coal/Lignite Gasification Projects worth Rs 37,500 has not received any applications.
Calling such reports premature, the Ministry of Coal clarified, the deadline to submit applications is September 7, 2026 and conclusions cannot be made until this window closes.
In a release issued on Saturday, September 5, the Ministry said, "Reference is drawn to reports appearing in a section of the press suggesting that the Rs 37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has not attracted any applications. The Ministry of Coal wishes to place the correct facts on record and clarify that such reports are premature and do not reflect the status of the Scheme or the application process."
The government further noted, "The first-round deadline for submission of applications is 7 September 2026. Accordingly, the number of applications received in the first round cannot be assessed or stated conclusively until the application window closes."
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The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on May 13, 2026 with a total outlay of Rs 37,500 crore. The project aims to boost the development of coal and lignite gasification in the country and promote the conversion of domestic coal and lignite into higher-value products, including syngas, methanol, ammonia and urea.
Through this initiative, the governemnt seeks to reduce dependence on imported feedstock and strengthen India's energy and economic security.
Following approval of the Scheme, the Ministry of Coal undertook outreach and stakeholder engagement to encourage participation from potential project developers. Roadshows were organised in New Delhi, Hyderabad and Mumbai, bringing together representatives from State Governments, public and private sector companies, technology providers, investors, financial institutions and other stakeholders, the Ministry informed.
Based on discussions with stakeholders, the Ministry was informed that Talcher Fertilisers Limited (TFL) and NTPC Limited have submitted their respective applications through the online portal. "This itself demonstrates that the assertion that the Scheme has received “no takers” is factually incorrect. The Ministry is also in communication with other prospective applicants who are at various stages of project preparation and application finalisation," the government said.
In light of the significant scale and complexity of the projects envisaged under the Scheme, prospective applicants are required to undertake substantial preparatory work, including preparation of Pre-Feasibility Reports, assessment of technology options, identification of coal/lignite and other feedstock arrangements, evaluation of project economics and preparation of detailed project proposals. The Ministry, therefore expects that additional applicants may finalise and submit their proposals as the deadline approaches.
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