NTPC leads coal gasification push, submits two proposals under Rs 37,500-crore scheme

THEBUSINESSBYTES BUREAU

NEW DELHI, NOVEMBER 10, 2026

State-run NTPC Ltd has submitted two applications under the second round of the Centre's Rs 37,500-crore scheme to promote surface coal and lignite gasification projects, proposing to produce urea, methanol and dimethyl ether (DME), the Coal Ministry said on Tuesday.

The second round of the scheme has concluded with the receipt of two applications from NTPC, marking another step towards expanding the country's coal gasification ecosystem and promoting the utilisation of domestic coal and lignite resources.

The two proposals envisage the production of urea in one project and methanol and dimethyl ether (DME) in the other, products that have significant industrial applications and potential to reduce dependence on imports.

The Union Cabinet had approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on May 13, 2026, with a total financial outlay of Rs 37,500 crore to accelerate the development of coal and lignite gasification projects across the country.

Meanwhile, the Ministry of Coal has opened the third round of the scheme from November 10, offering another opportunity to eligible entities to submit proposals for establishing coal and lignite gasification projects.

The last date for submission of applications under the third round is January 11, 2027, the ministry said.

Through successive rounds, the government aims to widen industry participation, attract investments and accelerate the adoption of coal gasification technologies, which can convert indigenous coal and lignite into value-added products.

The initiative is also aligned with India's ambitious target of achieving 100 million tonnes of coal gasification capacity by 2030, as the country seeks to diversify its energy mix, strengthen domestic manufacturing and unlock greater value from its vast coal reserves.

The latest round is expected to provide further momentum to the government's efforts to position coal gasification as a key driver of industrial growth and resource diversification.