The Ministry of Coal on May 29, 2026, issued the Coal Gasification Scheme for Promotion of Surface Coal/Lignite Gasification Projects.
The following has been stated:-
•The Government has launched a ₹37,500 crore incentive scheme to promote new surface coal/lignite gasification projects, aiming to reduce India's dependence on imports of crude oil, LNG, fertilizers, and chemicals.
•Eligible projects can receive financial support of up to 20% of plant and machinery costs, subject to caps of ₹5,000 crore per project and ₹12,000 crore per entity.
•The scheme supports production of syngas-based products such as methanol, ammonia, urea, hydrogen, synthetic natural gas, fuels, and steel inputs, encouraging domestic manufacturing and energy security.
•Projects will be selected through a transparent, competitive bidding process based on viability, capacity, project cost efficiency, technology tie-ups, and financial strength.
•The initiative seeks to accelerate investment, technology adoption, and large-scale utilization of India's coal and lignite resources while promoting import substitution and self-reliance.
The detailed notification is given in the document below.
