NTPC and Adani apply under Rs 37,500 crore coal gasification scheme

The first round of the Rs 37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects received applications from five players, including NTPC and Adani Enterprises.

NTPC Limited has filed for conversion of coal for Synthetic Natural Gas; Adani Enterprises Limited filed for three projects for Urea; Gallantt Ispat Limited for Direct Reduced Iron and Syngas; Shyam Sel & Power Limited for Syngas; Talcher Fertilisers Limited for Urea.

The Ministry further announced the opening of Round 2 of the scheme from Tuesday, and it will be open for the next two months.

Amidst reports that there were no takers for the scheme, the Ministry of Coal clarified that several prospective applicants are presently at advanced stages of project preparation and are expected to submit proposals in forthcoming rounds.

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The West Asia conflict has brought focus on Indian energy security and import dependence, and the government announced coal gasification as a key pillar for import substitution and industrial development strategy.

Coal gasification

The coal and lignite gasification projects are large-scale, capital-intensive investments that require extensive preparatory work, including pre-feasibility studies, technology assessments, environmental considerations, and detailed financial planning.

These projects have the potential to contribute significantly to the development of a robust domestic coal gasification ecosystem, with eight gasification projects already under implementation under the earlier Rs 8,500 crore financial incentive scheme under the National Coal Gasification Mission.

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The scheme is designed to promote the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia, urea, and hydrogen. Reduce India's dependence on imports of LNG, urea, ammonia and methanol, which together accounted for approximately Rs 2.77 lakh crore in imports during FY 2024-25.