Adani Enterprises, NTPC Among Applicants for ₹37,500 Crore Coal Gasification Scheme

Adani Enterprises has put forward three urea projects under the Centre’s ₹37,500-crore coal gasification scheme. NTPC and Talcher Fertilisers are also among the companies that have submitted proposals. 

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Seven applications came in during the first round. Gallantt Ispat's proposal covers direct reduced iron (DRI) and syngas. NTPC has sought support for a synthetic natural gas project, while Shyam Sel & Power has proposed syngas production. Talcher Fertilisers has submitted a urea proposal. 

The Ministry of Coal opened the application process in July. The first window ended on September 7, with the next one opening on September 8. New windows will open every two months. 

Coal gasification involves converting coal into syngas, which contains carbon monoxide and hydrogen. Syngas can then be used to produce urea, methanol, hydrogen and synthetic natural gas. 

₹37,500 crore scheme targets 75 MT capacity 

The Union Cabinet approved the ₹37,500-crore scheme on May 13. It will support projects that use domestic coal and lignite to produce syngas, methanol, ammonia, urea and hydrogen. 

Under the programme, the government plans to add 75 million tonnes of coal gasification capacity. The target forms part of the larger plan to take the country’s coal gasification capacity to 100 million tonnes by 2030. 

The Ministry of Coal estimates that projects under the scheme could bring in investments of around ₹2.5 lakh crore to ₹3 lakh crore. 

Scheme aimed at cutting import dependence 

Import substitution is one of the stated objectives of the programme. LNG, urea, ammonia and methanol together accounted for imports worth around ₹2.77 lakh crore in 2024-25, according to the ministry. 

Companies undertaking coal and lignite gasification projects can receive financial support of up to 20% of the eligible cost of plant and machinery, subject to the prescribed ceilings. 

The new scheme follows a ₹8,500-crore financial incentive programme approved in January 2024. Eight projects under that earlier scheme are already being implemented. 

Projects under the latest programme will involve work such as pre-feasibility studies, technology assessment, environmental evaluation and detailed financial planning.