India coal gasification scheme bids invited
Analysis based on 8 articles · First reported Jul 08, 2026 · Last updated Jul 20, 2026
The scheme is expected to boost domestic coal gasification projects, reducing India's import dependence on energy and chemicals. It may positively impact coal mining and chemical companies, while creating investment opportunities in the sector.
The India — Ministry of Coal has invited applications under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, approved by the Indian government in May 2026 with a total financial outlay of Rs 37,500 crore. The scheme aims to promote cleaner utilization of domestic coal, reduce import dependence, and enhance energy security. The request for proposal was issued on July 7, 2026, with a pre-application conference held on July 20. The last date for submission of applications is September 7, 2026. The scheme is expected to catalyze investments of around Rs 2.5-3 lakh crore, facilitate utilization of nearly 75 million tonnes of coal annually, and generate about 50,000 employment opportunities. Coal gasification converts coal into syngas for producing value-added products like methanol, ammonia, synthetic natural gas, and chemicals. The government also organized roadshows in Delhi and Hyderabad in June to promote the scheme.
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