Ministry of Coal Launches Round 3 of ₹37,500 Crore Coal Gasification Scheme: Application Guidelines & Deadline
Applications have been made available for the third time by the Ministry of Coal in relation to their ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, whereby companies will be able to seek funding for establishing indigenous gasification plants. The submission period started from November 10, 2026, and will continue till January 11, 2027.
The project seeks to increase the use of gasification of coal and lignite in India and ensure private investment in reducing dependency on imports of industrial raw material. The scheme has been approved by the Union Cabinet of the government of India on May 13, 2026.
Round 3 Follows Two Earlier Application Rounds
Round 3 was unveiled by the Ministry following the completion of Round 2, which saw two proposals submitted by NTPC Limited. The proposals are related to projects for the production of urea, methanol, and DME.
In addition, the government has embraced the concept of a rolling application process, where the companies will be given several chances to participate in the program. This strategy acknowledges that there is need for thorough technical evaluation and investment planning for the gasification projects.
What Does the Scheme Support?
Coal and lignite gasification converts solid fossil fuels into synthesis gas, commonly known as syngas. This gas can serve as a feedstock for manufacturing several industrial products, including:
- Methanol
- Ammonia
- Urea
- Dimethyl ether (DME)
The scheme seeks to promote projects that convert India’s domestic coal and lignite resources into higher-value products. It also aims to strengthen domestic production capabilities in sectors that currently depend significantly on imported raw materials.
Application Deadline and Guidelines
Applications from eligible companies/developers shall be submitted via the Ministry of Coal’s authorized online portal up to January 11, 2027.
Applicants may check the guidelines of the scheme, RFP, eligibility criteria, and mandatory documents before sending out any proposals. Preparation of project submissions will involve the following:
- Pre-feasibility reports and technical assessments
- Selection of suitable gasification technology
- Coal or lignite feedstock arrangements
- Project cost and financial viability assessments
- Details of proposed end products and production capacity
The Ministry has published the Round 3 schedule and updated scheme documents on its official website.
Investment and Employment Potential
The government believes that its ₹37,500 crore scheme will trigger investments of around ₹2.5 lakh crore to ₹3 lakh crore in almost 25 projects. This scheme is expected to create employment for about 50,000 people in terms of direct and indirect employment.
The program helps India meet its goal of having 100 million tonnes of coal gasification capacity by 2030.
Through Round 3, further industries may come forward and help enhance Indian manufacturing. The success of this round will, however, depend upon how successful projects prove to be in executing and how well they compete with imported goods.
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