Adani Enterprises and NTPC are among the companies that have applied under the Centre’s Rs 37,500 crore coal and lignite gasification scheme, giving a fresh push to the government’s plan to convert domestic coal into higher-value products. 

The first round received seven applications, including three separate proposals from Adani Enterprises for urea projects. The other applicants include Gallantt Ispat, Shyam Sel & Power and Talcher Fertilisers. 

Their proposals cover products such as direct reduced iron, syngas, synthetic natural gas and urea. NTPC has applied for a synthetic natural gas project, while Gallantt Ispat has proposed a project involving direct reduced iron and syngas.

The scheme was approved by the Union Cabinet in May with a financial outlay of Rs 37,500 crore. It aims to promote the conversion of domestic coal and lignite into products such as syngas, methanol, ammonia, urea and hydrogen. The government hopes this will help reduce India’s dependence on imported LNG, urea, ammonia and methanol. These imports were worth around Rs 2.77 lakh crore in FY25.

The government is targeting 100 million tonnes of coal gasification capacity by 2030, including 75 million tonnes under the new scheme. The programme could also attract an estimated Rs 2.5 lakh crore to Rs 3 lakh crore of investment and create employment across the value chain.

The response is significant because the scheme had recently faced questions over industry participation. The Coal Ministry had rejected reports that the programme had no takers, saying applications from NTPC and Talcher Fertilisers had already been received. The first round has now provided a much stronger response, with seven proposals submitted.

The second application round opened on September 8, with further windows scheduled at two-month intervals. Applications from the first round will now undergo detailed evaluation under the scheme guidelines.

Unlock profitable opportunities every day! Tradz by EquityPandit provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Tradz by EquityPandit and start winning now!