The Ministry of Coal has concluded the second round of the Rs. 37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, receiving two applications from NTPC Limited for the production of urea, methanol and dimethyl ether (DME).
The applications include one proposal for urea production and another for methanol and DME, highlighting the potential of coal gasification in supporting domestic manufacturing of critical industrial products.
The Union Cabinet approved the scheme on May 13, 2026, with a total financial outlay of Rs. 37,500 crore to accelerate the development of surface coal and lignite gasification projects in the country.
Meanwhile, the Ministry has launched the third round of the scheme with effect from November 10, 2026, inviting eligible entities to submit proposals for setting up coal and lignite gasification projects. The last date for submission of applications is January 11, 2027.
Through successive rounds, the government aims to encourage wider industry participation, attract investments and accelerate coal gasification technology adoption to achieve the national target of 100 million tonnes of coal gasification capacity by 2030.