NTPC, Talcher Fertilisers express interest in coal gasification, govt says scheme at early stage

The Coal Ministry has been informed in discussions with stakeholders that Talcher Fertilisers (TFL) and NTPC have already submitted their respective applications through the online portal for the Scheme for Promotion of Surface Coal/Lignite Gasification Projects. Denying reports of ₹37,500 crore scheme not having attracted applications, the Coal Ministry reiterated “that the scheme is at an early stage of implementation and that the first application window remains open until 7 September 2026, and therefore, it is not appropriate to characterise the Scheme as having received “no takers” at an interim stage.” Accordingly, the government has said that “the number of applications received in the first round cannot be assessed or stated conclusively until the application window closes.”The government said in a press release that the success and level of participation in the scheme should be “assessed after completion of the prescribed application process and subsequent rounds, rather than on the basis of premature assessments.”The Scheme for Promotion of Surface Coal/Lignite Gasification Projects was approved by the Union Cabinet on 13th May 2026 with a total financial outlay of ₹37,500 crore. The initiative expects to catalyse investments of approximately ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects, generate 50,000 direct and indirect jobs, and help in achieving 100 million tonnes of coal gasification capacity by 2030. The government had highlighted plans to complete all 25 plants in a period of 5 years, with 4 under-construction projects expected to be completed in a year.On 13th August, Minister for Coal and Mines G Kishan Reddy had said that 8 companies, including Coal India, are looking to produce syngas, with work expected to intensify in the next few months. The Minister noted that incentives are already being provided for surface gasification, but not for underground gasification.The coal gasification process converts coal into synthesis gas (syngas), which can be used to produce a wide range of value-added products such as methanol, urea, ammonium nitrate, synthetic natural gas, and other chemical feedstocks. The government is yet to provide an estimate on extent of import substitution of LNG/LPG via coal gasification.The Scheme is aimed at accelerating the development of coal and lignite gasification in the country and promoting the conversion of domestic coal and lignite into higher-value products, including syngas, methanol, ammonia and urea. By facilitating greater utilisation of domestic resources for production of such value-added products, the scheme seeks to reduce India’s dependence on imported feedstock.Following approval of the scheme, the Coal Ministry undertook outreach and stakeholder engagement to encourage participation from potential project developers. Roadshows were organised in New Delhi on 28th May 2026, in Hyderabad on 11th June 2026 and in Mumbai on 18th June 2026. The Request for Proposal (RFP) under the Scheme was issued on 7 July 2026, following which the online portal for submission of applications was launched. To facilitate greater clarity and ensure opportunity for prospective applicants to seek clarifications, a pre-application conference was held on 20th July 2026.Given 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 Coal Ministry said that it expects that additional applicants may finalise and submit their proposals as the deadline approaches.The Ministry added that the Scheme has been structured to provide industry with multiple opportunities to participate, with application rounds set to operate on a rolling basis. Upon closure of the application window for one round, the subsequent round will open from the very next day and remain open for a period of two months to ensure that companies that may require additional time to complete project preparation are not excluded merely because they are unable to participate in an earlier round. The rolling-round mechanism has been deliberately incorporated in view of the substantial preparation and investment requirements associated with large-scale coal/lignite gasification projects.

Source link