The government’s ₹37,500-crore coal and lignite gasification scheme has attracted seven applications in its first bidding round, signalling strong industry interest in India’s coal gasification programme. Adani Enterprises Ltd has emerged as the leading applicant, submitting bids for three projects focused on urea production. Other applicants include state-owned NTPC Ltd and Talcher Fertilizers, along with private-sector companies Gallantt Ispat and Shyam SEL & Power. The applications cover multiple downstream products, including urea, synthetic natural gas (syngas) and direct reduced iron (DRI).
Urea Emerges as a Key Focus
The first-round bids highlight strong industry interest in using coal gasification to support domestic fertiliser production. Adani Enterprises has proposed three urea projects, while Talcher Fertilizers has submitted an application for another urea project. Meanwhile, NTPC and Shyam SEL & Power have proposed projects to produce synthetic natural gas (syngas). Gallantt Ispat has applied for a project that will produce direct reduced iron (DRI) and syngas. Applications received during the first round will now undergo detailed evaluation in line with the scheme’s guidelines and the request for proposal.
Coal Gasification Scheme Targets 75 Million Tonnes by 2030
The cabinet approved the ₹37,500-crore scheme in May to accelerate the development of coal and lignite gasification capacity in India. The programme aims to support the development of 75 million tons (mt) of coal gasification capacity by 2030, contributing to the country’s broader target of achieving 100 mt of coal gasification capacity by 2030. According to the ministry of coal, the scheme could potentially catalyse investments of ₹2.5-3 trillion and generate direct and indirect employment across the coal gasification value chain.
Reducing Dependence on Imported Energy and Chemicals
Coal gasification converts coal into syngas, which can subsequently be used to manufacture a range of industrial products, including urea, methanol, ammonia, hydrogen and synthetic natural gas. Consequently, the government sees coal gasification as a potential route to reduce India’s dependence on imports of LNG, urea, ammonia and methanol. These products collectively accounted for imports worth approximately ₹2.77 trillion in 2024-25, according to the ministry of coal. By promoting domestic production, the government expects coal gasification to strengthen energy security while also supporting the development of domestic chemical and fertiliser industries.
Ministry Calls Seven Bids a Vote of Confidence
The first-round response comes amid earlier concerns about whether the flagship coal gasification programme would attract sufficient industry participation. However, the ministry of coal described the seven applications as a “vote of confidence” in the scheme and India’s National Coal Gasification Mission. Alok Kumar Singh, Advisor (Projects), Ministry of Coal, said the industry’s response demonstrated that concerns about a lack of bidders were premature. He also highlighted the participation of major industrial groups and public-sector undertakings in the first round.
Scheme Builds on Earlier ₹8,500-Crore Programme
As reported by business-standard.com, the latest initiative builds on an earlier ₹8,500-crore financial incentive scheme approved in 2024. Under that programme, eight coal gasification projects are already under implementation. The new scheme therefore represents a significant expansion of government support for coal gasification and aims to accelerate commercial-scale projects across the country.
