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Round 1 of the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects closed with seven applications.
Applicants are NTPC Limited (synthetic natural gas), Adani Enterprises (three urea projects), Gallantt Ispat (direct reduced iron and syngas), Shyam Sel & Power (syngas) and Talcher Fertilisers (urea).
The scheme was approved by the Union Cabinet on 13 May 2026; the Request for Proposal was issued on 7 July 2026.
Round 2 opened on 8 September 2026, and application windows will continue to open at two-month intervals.
The scheme supports the national target of 100 million tonnes of coal gasification capacity by 2030, of which 75 million tonnes is to come from the scheme itself.
Coal is reacted with controlled oxygen and steam at high temperature so that it becomes a gas rather than burning. The product, syngas, is mainly carbon monoxide and hydrogen, and is the feedstock for methanol, ammonia, urea, synthetic natural gas and hydrogen.
Convert domestic coal and lignite into higher-value products — syngas, methanol, ammonia, urea and hydrogen — and cut import dependence.
Key: ₹37,500 crore outlay approved by the Union Cabinet on 13 May 2026; rolling application windows every two months; targets 75 million tonnes of gasification capacity within the scheme.
The predecessor incentive scheme for gasification projects.
Key: ₹8,500 crore outlay; eight projects are currently under implementation under it.
The umbrella national effort the two incentive schemes sit under.
Key: Sets the objective of 100 million tonnes of coal gasification capacity by 2030.
India's first coal gasification-based ammonia-urea plant, reviving the Talcher unit of Fertilizer Corporation of India Limited; designed to use domestic coal as feedstock in place of imported natural gas.
Nodal ministry for the gasification scheme, for commercial coal block auctions and for Coal India Limited.
GS Paper 3 > Infrastructure > Energy and Indigenisation of Technology
General Awareness > Economy and Government Schemes
Consider the following substances: I. Ethanol II. Nitroglycerine III. Urea Coal gasification technology can be used in the production of how many of them?
Answer: Only two
Synthesis gas — mainly carbon monoxide and hydrogen — produced by gasifying coal; the feedstock for methanol, ammonia, urea and synthetic natural gas.
Converting a coal seam into gas in place, underground, without mining the coal out — distinct from surface gasification of mined coal.
Iron produced by reducing iron ore with a reducing gas such as syngas instead of coke in a blast furnace.