The Ministry of Coal has invited applications under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, a ₹37,500 crore initiative aimed at promoting coal gasification, reducing import dependence and strengthening India's self-reliance in the energy and chemical sectors. The scheme came into effect on 13 May 2026.

Coal gasification converts coal or lignite into synthetic gas, which can be used as an alternative to direct coal combustion and as a feedstock for producing chemicals, fertilizers and fuels. The government expects the technology to improve value addition from domestic coal resources while reducing imports of these products.

Following the scheme's approval, the Ministry released a set of guidelines on 25 June 2026, followed by a Request for Proposal (RFP) on 7 July 2026, calling for interested parties to submit their project proposals.

In order to facilitate the understanding of the scheme by the stakeholders, a Pre-Application Conference is scheduled on 20 July 2026. The Pre-Application Conference will be an opportunity for applicants and other stakeholders to seek clarifications on the guidelines and application process of the scheme.

The last date for submitting applications is 7 September 2026. It would be recommended to all interested parties to familiarize themselves with the Scheme Guidelines, RFP and Application time line that can be found at the Ministry of Coal Website prior to applying.

The Coal Gasification Scheme is an integral component of the government strategy aimed at increasing gasification capacity as well as promoting domestic production of fuels, fertilizers and chemicals through the exploitation of abundant coal and lignite deposits of India.