Today's News

Round 2 of ₹37,500 Crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects Concludes with Two Applications from NTPC Limited; Round 3 Opens Today

PIB National (English) · Published 10 November 2026 · Last updated

The ₹37,500 crore Surface Coal/Lignite Gasification Scheme moves to Round 3 on 10 Nov 2026, with NTPC submitting two applications in Round 2 targeting urea, methanol and DME.

Key points

  • The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on 13 May 2026 with a total outlay of ₹37,500 crore.
  • The Ministry of Coal announced on 10 Nov 2026 that Round 2 of the scheme has concluded, receiving two applications from NTPC Limited.
  • NTPC’s Round 2 proposals seek to produce Urea under one application and Methanol and Dimethyl Ether (DME) under another.
  • The Ministry launched Round 3 effective 10 Nov 2026, inviting eligible entities to submit proposals for coal/lignite gasification projects.
  • The last date for submission of applications in Round 3 is 11 Jan 2027.
  • Through successive rounds, the scheme aims to achieve a national target of 100 million tonnes of coal gasification capacity by 2030.
  • The scheme is administered by the Ministry of Coal, which will evaluate proposals and allocate financial support from the approved outlay.
  • The scheme’s financial assistance is intended to attract wider industry participation, accelerate technology adoption and diversify utilisation of India’s indigenous coal resources.

Background

  • The scheme was conceived to accelerate development of surface coal and lignite gasification, a technology that converts solid fuel into synthesis gas for downstream chemicals.
  • Earlier, the government had set a strategic goal of 100 million tonnes of coal gasification capacity by 2030 to reduce import dependence for fertilizers and petro‑chemicals.
  • The Union Cabinet’s approval on 13 May 2026 formalised the scheme under the Ministry of Coal’s purview, allocating ₹37,500 crore for multiple rounds of project funding.

Prelims facts and Mains angle for this issue are in the full SWAदेSH note.

Original report: PIB National (English)

Sources