Industry Odisha Bureau, Sep 08: The Centre’s coal gasification push has cleared its first test. Seven applications arrived under a new Rs 37,500 crore scheme. Five companies filed them, led by Adani Enterprises.
Adani submitted three separate applications, all for urea projects. That is three proposals, not three approved plants. Each will face its own evaluation.
Four other entities rounded out the applicant pool. Gallantt Ispat applied for direct reduced iron and syngas. NTPC proposed a synthetic natural gas project. Shyam Sel & Power sought approval for syngas. Talcher Fertilisers applied for a separate urea project.
Coal gasification converts domestic coal and lignite chemically. The process yields syngas, methanol, ammonia, urea and hydrogen. These are industrial inputs India currently imports heavily.
The scheme aims to reduce that import dependence. Targeted imports include LNG, urea, ammonia and methanol. Officials describe this as a strategic substitution goal, not an immediate fix.
The Union Cabinet approved the scheme on May 13. Its financial outlay totals Rs 37,500 crore. That figure represents government commitment, not private capital already deployed.
A wider target frames this first round. The Centre wants 100 million tonnes of gasification capacity by 2030. Of that, 75 million tonnes falls under this specific scheme.
Officials expect the programme to catalyse further investment. Their estimate ranges between Rs 2.5 lakh crore and Rs 3 lakh crore. That remains a projection, not committed financing.
This is not India’s first coal gasification push. An earlier Rs 8,500 crore scheme was approved in January 2024. Eight projects under that scheme remain in implementation.
The current round followed a Request for Proposal issued July 7. That window has now closed for evaluation. The Ministry of Coal will assess entries against scheme guidelines and the RFP.
No applicant has secured approval yet. Interest at this stage signals appetite, not outcome. Execution will determine whether proposals become working plants.
A senior ministry official called the response encouraging. Seven applications from major industrial and public-sector names, the official said, reflect confidence in the mission.
The scheme’s design anticipates repeated participation, not a single window. Round 2 opens on September 8. Further rounds will follow at two-month intervals.
The ministry said additional applicants are preparing proposals already. Some are described as being at advanced stages of readiness. Their entry would expand the pipeline beyond this initial seven.
For now, attention shifts from applications to evaluation. Five companies have signalled interest in coal-based conversion. Whether that interest becomes commissioned capacity depends on what comes next.
