The ministry of coal has invited applications under its Rs. 37,500 crore incentive scheme to promote commercial-scale surface coal and lignite gasification projects across India. The initiative marks the next phase of the government’s strategy to increase domestic value addition and reduce dependence on imported industrial feedstocks and fuels.
Financial Support for Commercial Gasification Projects
Approved by the Union Cabinet in May 2026, the scheme offers financial assistance to eligible developers that establish coal and lignite gasification facilities. These projects will convert domestic coal and lignite into higher-value products, including synthetic fuels, industrial feedstocks, chemical intermediates and other value-added products. By encouraging commercial-scale deployment, the government aims to strengthen India’s coal-based chemical and energy value chain.
RFP Released Following Operational Guidelines
The ministry issued detailed operational guidelines on June 25, 2026 and subsequently released the Request for Proposal (RFP) for interested participants. Developers seeking support under the scheme must submit their applications by 7 September 2026. To encourage broader participation and provide clarity on implementation requirements, the Ministry will hold a pre-application conference on 20 July 2026. As reported by projectstoday.ai, as the application process begins, the scheme is expected to attract participation from energy companies, chemical manufacturers and infrastructure developers looking to invest in commercial coal gasification projects in India.
