₹37,500 Crore Coal Scheme Gets No Bids Yet
The Centre’s ₹37,500 crore incentive scheme to promote coal and lignite gasification has not received any applications so far, raising questions over industry appetite for the ambitious programme. However, the bidding deadline is September 7, meaning companies still have time to submit proposals.
₹37,500 Crore Scheme Gets No Applications Yet
The Ministry of Coal issued the Request for Proposal in July for projects under the financial incentive programme, which is designed to accelerate large-scale surface coal and lignite gasification across India.
As of September 4, neither private companies nor public-sector enterprises had submitted applications.
The government is targeting the gasification of around 75 million tonnes of coal and lignite under the programme.
Coal Gasification Aims to Cut Import Dependence
Coal gasification converts coal or lignite into synthesis gas, or syngas, which can be used to manufacture products such as methanol, ammonia, fertilisers, hydrogen and other chemicals.
The government sees the technology as a way to reduce dependence on imports of LNG, urea, ammonia, methanol and other products vulnerable to global supply disruptions.
India’s import bill for products that could potentially be substituted through domestic gasification was estimated at around ₹2.77 lakh crore in FY25.
Earlier Gasification Projects Also Face Delays
The new programme builds on a ₹8,500 crore incentive scheme approved in 2024.
Eight projects receiving incentives worth about ₹6,233 crore under that programme are under implementation, although several have faced delays in moving from planning to construction.
The lack of applications under the larger ₹37,500 crore programme will therefore be closely watched, particularly if no substantial bids arrive before the September 7 deadline.
