Coal Ministry Clarifies Position on ₹37,500 Crore Surface Coal Gasification Scheme
The Union Ministry of Coal has released an official statement through the Press Information Bureau (PIB) addressing media reports regarding the implementation of the ₹37,500 crore Scheme for Promotion of Surface Coal and Lignite Gasification Projects. Refuting claims that the ambitious national initiative had failed to attract any commercial applications, the Ministry stated that such assertions are premature and do not reflect the ongoing application process.
Approved by the Union Cabinet in May 2026, the financial scheme aims to accelerate domestic coal gasification capacity to 100 million tonnes by 2030. The initiative seeks to convert domestic coal and lignite into high-value products such as syngas, methanol, synthetic urea, and ammonia, thereby significantly reducing India's heavy reliance on imported energy feedstocks and liquefied natural gas (LNG).
The Ministry clarified that following the Cabinet approval, extensive stakeholder roadshows were conducted across major industrial hubs including New Delhi, Hyderabad, and Mumbai to engage prospective investors, technology providers, and state government entities. The Request for Proposal (RFP) was officially issued on July 7, 2026, alongside the launch of a dedicated online submission portal. With the initial application window remaining open until September 7, 2026, government officials reiterated that formal evaluation will begin only after the portal closes, reassuring industry stakeholders of the scheme's robust momentum.
