Strong Industry Participation Marks Pre-Application Conference for Rs 37,500 Crore Surface Coal/Lignite Gasification Scheme

📌 Summary:

• The Ministry of Coal conducted the Pre-Application Conference for the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects, chaired by Shri Sanoj Kumar Jha, Additional Secretary, Ministry of Coal

• Participation came from public sector enterprises, private companies, technology providers and prospective applicants, reflecting industry interest in cleaner, value-added utilisation of domestic coal

• The Ministry gave detailed clarifications on the Scheme Guidelines and the Request for Proposal (RFP) — covering eligibility criteria, evaluation methodology, financial incentives and the application process — and addressed participants' queries

• The Scheme was approved by the Union Cabinet on 13 May 2026

• Objective: accelerate development of surface coal/lignite gasification projects and support production of high-value downstream products — synthetic natural gas, ammonia, methanol, DRI (Direct Reduced Iron), synthetic fuels and chemicals

• Expected impact: catalyse investments of about ₹2.5-3 lakh crore; facilitate utilisation of nearly 75 million tonnes of coal annually; generate about 50,000 employment opportunities; and significantly reduce India's dependence on imports of energy and chemical products

• Last date for submission of applications: 7 September 2026

🎯 UPSC Relevance: GS3 (Indian Economy — energy security, industrial policy, import substitution; Environment — cleaner coal utilisation and the transition debate). Coal gasification sits at the intersection of energy self-reliance and decarbonisation trade-offs, making it a strong Mains discussion point.

📝 Prelims Facts:

• Scheme outlay: ₹37,500 crore; approved by the Union Cabinet on 13 May 2026

• Implementing ministry: Ministry of Coal

• Downstream products targeted: synthetic natural gas, ammonia, methanol, DRI, synthetic fuels, chemicals

• Expected investment catalysed: ₹2.5-3 lakh crore; coal utilisation ~75 million tonnes annually; ~50,000 jobs

• Application deadline: 7 September 2026

🔑 Key Term: Coal gasification — a thermochemical process that converts coal into syngas (mainly carbon monoxide and hydrogen) by reacting it with controlled amounts of oxygen and steam at high temperature; the syngas is then used as feedstock for fuels, fertilisers and chemicals instead of burning the coal directly.