Surface Coal and Lignite Gasification Scheme: Round 1 concludes with seven applications

Why in News

1. Round 1 closed: The Scheme for Promotion of Surface Coal and Lignite Gasification Projects received seven applications from public and private companies. Round 2 opened on 8 September 2026.

Core facts

1. Administering body: The Ministry of Coal runs the scheme.
2. Approval and outlay: The Union Cabinet approved the scheme on 13 May 2026. The financial outlay is ₹37,500 crore.
3. Objective: The scheme converts domestic coal and lignite into higher value products. These include syngas, methanol, ammonia, urea and hydrogen.
4. Import substitution: India imported liquefied natural gas (LNG), urea, ammonia and methanol worth ₹2.77 lakh crore in the financial year 2024 to 2025.
5. Capacity target: The scheme targets 100 million tonnes of coal gasification capacity by 2030. It contributes 75 million tonnes of that target.
6. Round 1 applicants: NTPC Limited applied for one synthetic natural gas project. Adani Enterprises Limited applied for three urea projects. Gallantt Ispat Limited, Shyam Sel and Power Limited and Talcher Fertilisers Limited applied for one project each.
7. Process: The Request for Proposal was issued on 7 July 2026. Further Round 2 windows open every two months.

Static Context

1. Coal gasification is a thermochemical process. It reacts coal with controlled oxygen and steam to produce syngas, a mixture of carbon monoxide and hydrogen.
2. Syngas is a feedstock for fertilisers, chemicals and fuels. It reduces reliance on imported natural gas.
3. Earlier scheme: A ₹8,500 crore gasification incentive scheme was notified in January 2024. Eight projects are under implementation under it.
4. India’s coal has high ash content and low sulphur content. High ash lowers gasification efficiency and needs specific technology choices.

Prelims angle

1. Products from coal gasification: urea, methanol, ammonia, hydrogen and synthetic natural gas are testable factual hooks.
2. Composition of syngas: carbon monoxide and hydrogen.
3. Nodal ministry: Ministry of Coal. Cabinet approval year: 2026.

Mains angle

1. GS3, energy and infrastructure: A question can ask how coal gasification advances energy security and import substitution while raising environmental concerns from continued coal use.

Matching Previous Year Question

“[2025] Consider the following substances:
I. Ethanol
II. Nitroglycerine
III. Urea
Coal gasification technology can be used in the production of how many of them?
(a) Only one
(b) Only two
(c) All three
(d) None
Final answer: (b)”

“[2026, GS3, 15 marks] Explain the key challenges for India’s energy security. What measures do you suggest for ensuring energy security along with economic growth and sustainability?”