The Union Cabinet approved the scheme on May 13, 2026, with a total financial outlay of Rs 37,500 crore to accelerate the development of surface coal and lignite gasification projects in the country.
The two applications submitted by NTPC cover separate projects: one for urea production and another for methanol and dimethyl ether (DME) production. The proposals highlight the potential of coal gasification to diversify the utilisation of India's domestic coal and lignite resources.
Building on the progress of the first two rounds, the Ministry of Coal has launched Round 3 of the scheme, effective November 10, 2026. Eligible entities can submit applications until January 11, 2027, for setting up coal and lignite gasification projects.
Through successive rounds, the ministry aims to encourage wider industry participation, attract investments and accelerate the adoption of coal gasification technologies. The initiative supports India's target of achieving 100 million tonnes of coal gasification capacity by 2030.
