India’s Ministry of Coal has received seven applications from five companies in the first round of its Rs 37,500 crore surface coal and lignite gasification scheme. The applicants are NTPC, Adani Enterprises, Gallantt Ispat, Shyam Sel & Power and Talcher Fertilisers.
The proposals span synthetic natural gas, urea, direct reduced iron and syngas. The range gives energy, fertiliser and steel-sector participants an early indication of the industrial uses being pursued through the scheme, although the ministry has not yet reported any selection outcomes.
A second application round opened on 8 September 2026, and the ministry says subsequent windows will occur at two-month intervals. That schedule matters for project developers and their engineering, technology and financing partners because further proposals can enter the process while the first group moves to evaluation.
Urea projects account for four applications
Adani Enterprises submitted three applications for urea, while Talcher Fertilisers submitted one application for the same product. Together, these represent four of the seven applications received in the opening round.
NTPC applied for a synthetic natural gas project. Gallantt Ispat submitted an application covering direct reduced iron and syngas, while Shyam Sel & Power applied for a syngas project.
The applicant count and application count differ because Adani Enterprises filed three proposals. The ministry has not provided application-specific capacities, costs, locations or schedules in the confirmed information, limiting any assessment of the proposals’ scale or regional impact.
Evaluation is the next threshold
The Ministry of Coal says the applications will be evaluated under the scheme guidelines and request-for-proposal process. The RFP was issued on 7 July 2026.
For contractors, equipment suppliers and technical service providers, the submissions indicate prospective project activity rather than confirmed orders. Any commercial opportunity would depend on evaluation results and subsequent project decisions, which have not been announced.
The mix of proposed outputs could require different process configurations and downstream facilities. However, without disclosed capacities, technology choices or project sites, it is too early to determine likely engineering scope, infrastructure requirements or procurement timing.
New scheme follows an earlier programme
The Cabinet approved the Rs 37,500 crore surface coal and lignite gasification scheme on 13 May 2026, according to the ministry. The first-round applications therefore arrived after the RFP was issued in July.
The ministry also says an earlier Rs 8,500 crore coal-gasification scheme, approved in January 2024, has eight projects under implementation. That programme provides a separate implementation track, but the confirmed information does not specify the status, capacity or commissioning timetable of those eight projects.
The two schemes establish a broader pipeline of gasification initiatives at different stages. Even so, scheme outlays should not be treated as application-level investment commitments, and applications should not be interpreted as approved or operating projects.
What the market should watch next
The immediate watch-point is how the ministry evaluates the seven first-round applications and whether it identifies successful proposals, project conditions or implementation milestones. Disclosure of locations, capacities, technology routes and capital requirements would allow construction and energy-market participants to assess the potential work more precisely.
Attention will also turn to the number and type of proposals entering the second round. With application windows planned at two-month intervals, the emerging pipeline can be measured only as each round closes and the ministry reports evaluation outcomes.
Sources
Source: Seven applications received for India’s coal gasification scheme as second round opens
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