Coal gasification scheme Round 3 open: NTPC's 2 bids close Round 2
Synopsis
India's ₹37,500 crore coal gasification scheme has cleared its second round with two NTPC bids targeting Urea, Methanol and DME production — and the government has immediately opened Round 3, underscoring urgency behind its 100-million-tonne gasification target for 2030. The back-to-back launch follows the ministry publicly rebutting claims just months ago that the scheme had drawn zero takers.
Key Takeaways
The Ministry of Coal closed Round 2 of the ₹37,500 crore coal gasification scheme on 10 November 2026 with 2 applications from NTPC Limited .
NTPC's proposals envisage production of Urea, Methanol, and Dimethyl Ether (DME) .
Round 3 launched on 10 November 2026 ; application deadline is 11 January 2027 .
The Cabinet approved the scheme on 13 May 2026 with a total outlay of ₹37,500 crore .
India's national target is 100 million tonnes of coal gasification capacity by 2030 .
In September 2026 , the ministry rebutted reports of zero applications, confirming Talcher Fertilisers Limited and NTPC had already applied.
The Ministry of Coal on Tuesday, 10 November 2026 announced the conclusion of Round 2 of the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, with two applications received from NTPC Limited. With Round 2 formally closed, the ministry has simultaneously launched Round 3 of the scheme, effective 10 November 2026, with a submission deadline of 11 January 2027.
What NTPC's Applications Propose
The two applications submitted by NTPC Limited envisage the production of Urea, Methanol, and Dimethyl Ether (DME). The ministry said the proposals highlight the potential of coal gasification in supporting domestic production of critical industrial products and diversifying the utilisation of India's indigenous resources. The ministry described this as 'a significant step towards advancing the objectives of the Scheme.'
Background: What the Scheme Covers
The Cabinet approved the ₹37,500 crore scheme on 13 May 2026, with the goal of accelerating the development of surface coal and lignite gasification projects across the country. Through successive rounds, the Ministry of Coal aims to encourage wider industry participation, attract investments, and accelerate adoption of coal gasification technologies.
Notably, in September 2026, the ministry had to refute reports — describing them as 'premature and incorrect' — that claimed the scheme had attracted no applications. The ministry clarified at the time that both Talcher Fertilisers Limited and NTPC Limited had already submitted applications through the online portal, and that additional prospective applicants were at various stages of project preparation.
Why Applications Take Time
The ministry has acknowledged that the large scale and complexity of projects under the scheme require applicants to undertake substantial preparatory work. This includes preparation of Pre-Feasibility Reports, assessment of technology options, identification of coal and lignite feedstock arrangements, evaluation of project economics, and preparation of detailed project proposals — a process that cannot be rushed.
National Target and Round 3 Details
The overarching national target is to achieve 100 million tonnes of coal gasification capacity by 2030. Round 3 is now open and eligible entities may submit proposals for setting up coal or lignite gasification projects in the country. The last date for submission under Round 3 is 11 January 2027. The ministry has indicated it remains in communication with other prospective applicants who are at various stages of finalising their proposals.
Point of View
500 crore coal gasification scheme is moving — but slowly, and mostly on the strength of public-sector giants like NTPC and Talcher Fertilisers. The ministry's need to publicly rebut 'zero applications' claims as recently as September points to a persistent perception problem around private-sector appetite. India's 100-million-tonne gasification target by 2030 is ambitious; with Round 3 barely underway and timelines for large projects running years-long, the execution window is narrowing. The real test of this scheme's credibility will be whether Round 3 draws private capital — or whether it, too, is carried largely by government-linked entities.
NationPress
10 Nov 2026
Frequently Asked Questions
What is the ₹37,500 crore coal gasification scheme launched by the government?
It is a Cabinet-approved scheme launched on 13 May 2026 with a total financial outlay of ₹37,500 crore to accelerate the development of surface coal and lignite gasification projects in India. The goal is to achieve 100 million tonnes of coal gasification capacity by 2030.
What did NTPC propose in its Round 2 applications?
NTPC Limited submitted two applications in Round 2, envisaging the production of Urea, Methanol, and Dimethyl Ether (DME) through coal gasification. The ministry said the proposals demonstrate the potential of coal gasification to support domestic industrial production.
When does Round 3 of the coal gasification scheme close?
Round 3 opened on 10 November 2026 and the last date for submission of applications is 11 January 2027. Eligible entities may submit proposals for setting up coal or lignite gasification projects anywhere in the country.
Why did the Coal Ministry have to refute reports about the scheme in September 2026?
Reports had claimed, incorrectly according to the ministry, that the ₹37,500 crore scheme had attracted no applications. The ministry clarified that Talcher Fertilisers Limited and NTPC had already applied and that additional applicants were at various stages of project preparation.
Why does applying to the coal gasification scheme take so long?
Projects under the scheme are large and complex, requiring applicants to prepare Pre-Feasibility Reports, assess technology options, arrange coal or lignite feedstock, evaluate project economics, and compile detailed proposals before applying. The ministry has acknowledged this preparation work takes considerable time.
