New Delhi: The Ministry of Coal said on Saturday that Talcher Fertilisers Ltd (TFL) and National Thermal Power Corporation (NTPC) Ltd have already submitted applications under the Centre’s Rs 37,500 crore coal and lignite gasification scheme.
The ministry rejected reports that the scheme has received no takers.
TFL is a Joint Venture Company (JVC) promoted by Gas Authority of India Ltd (GAIL), Coal India Ltd (CIL), Rashtriya Chemicals and Fertilisers (RCF) Ltd and Fertiliser Corporation of India Ltd (FCIL) to revive FCIL’s Talcher fertilizer unit in the Angul district of Odisha. The company plans to produce about 1.26 MMTPA of urea using coal as feedstock. The plant shall employ coal gasification technology for production of urea with an estimated cost of more than Rs 13,270 crore. The project is targeted for completion by Dec-2027.
The first application window is still open and will close on September 7, making any assessment of the number of applications at this stage premature, the ministry said further. It added that other prospective applicants are at various stages of preparing their projects and finalising applications.
The Scheme for Promotion of Surface Coal/Lignite Gasification Projects was approved by the Union Cabinet on May 13, 2026, with a total financial outlay of Rs 37,500 crore. It aims to promote the conversion of domestic coal and lignite into higher-value products such as syngas, methanol, ammonia and urea, as reported by ANI.
The scheme is expected to catalyse investments of around Rs 2.5 lakh crore to Rs 3 lakh crore across nearly 25 projects and generate about 50,000 direct and indirect employment opportunities, the ministry said.
It is also expected to contribute to the government’s broader objective of achieving 100 million tonnes of coal gasification capacity by 2030.
“The assertion that the Scheme has received ‘no takers’ is factually incorrect,” the ministry said, pointing to the applications submitted by TFL and NTPC.
It had undertaken stakeholder outreach after the scheme’s approval, including roadshows in New Delhi, Hyderabad and Mumbai, followed by the issuance of the Request for Proposal on July 7 and the launch of an online application portal, the ministry said.
A pre-application conference was held on July 20 to address queries on eligibility, scheme provisions and the application process, it said.
Large-scale coal and lignite gasification projects require substantial preparation, including technology assessment, feedstock arrangements, project economics and preparation of detailed proposals, the ministry noted. It therefore expects additional applicants to submit proposals as the deadline approaches.
The scheme will also allow companies multiple opportunities to participate through rolling application rounds. After one round closes, the next round will open from the following day and remain open for two months, allowing prospective applicants additional time to complete project preparation.
Participation should be assessed after completion of the prescribed application process and subsequent rounds rather than at the current interim stage, the ministry said.