New Delhi: The Ministry of Coal has concluded the second round of the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, receiving two applications from NTPC Limited for projects aimed at producing urea, methanol and dimethyl ether (DME).
The scheme was approved by the Union Cabinet on 13 May 2026, with a total financial outlay of Rs 37,500 crore. It aims to promote coal and lignite gasification projects and encourage the use of domestic resources to manufacture industrial products.
The two applications submitted by NTPC under Round 2 cover separate projects. The first proposes the production of urea, while the second focuses on methanol and dimethyl ether (DME).
The proposals highlight the potential of coal gasification to support domestic production of key industrial products and diversify the use of India's indigenous coal and lignite resources.
Round 3 Opens for Applications
Building on the progress of the first two rounds, the Ministry of Coal has launched Round 3 of the scheme, effective 10 November 2026.
Eligible entities can submit proposals to establish surface coal or lignite gasification projects. The last date for submitting applications is 11 January 2027.
Through successive rounds, the ministry aims to widen industry participation, attract investment, and accelerate the adoption of coal gasification technology in India.
The initiative is part of the country's broader effort to achieve a coal gasification capacity of 100 million tonnes by 2030.
