Adani and NTPC Lead Bids for India's ₹37,500-Crore Coal Gasification Scheme

On September 8, 2026, India's Ministry of Coal announced that the initial bidding window for the Centre's Rs 37,500-crore coal gasification scheme closed on September 7 with seven project proposals from five industrial applicants. Private infrastructure conglomerate Adani Enterprises and state-run utility NTPC Ltd headline the initial wave of corporate bidders seeking government incentives to convert domestic coal and lignite into synthetic chemicals and alternative energy feedstocks.

The submission tally counters earlier public skepticism and media reports questioning corporate interest in the flagship clean-coal program. With four of the seven proposals dedicated to urea manufacturing, the opening bidding window demonstrates heavy industrial alignment around domestic fertiliser security, chemical self-reliance, and energy import substitution.

Adani Enterprises submitted three separate project applications under the scheme, focusing entirely on establishing urea production infrastructure. State-backed Talcher Fertilisers also submitted an application for a urea manufacturing project, bringing total proposals targeted at agricultural fertiliser inputs to four out of the seven submitted bids.

State-owned power producer NTPC Ltd submitted a proposal aimed at producing synthetic natural gas. Meanwhile, private sector industrial manufacturers Gallantt Ispat and Shyam Sel & Power submitted bids for synthesis gas (syngas) facilities. Gallantt Ispat proposed a dual-production framework to yield direct reduced iron (DRI) alongside syngas, whereas Shyam Sel & Power focused its submission exclusively on standalone syngas generation.

The receipt of seven applications across public and private sectors comes after media speculation suggested the incentive scheme was struggling to generate initial traction among major industrial conglomerates. Coal ministry officials pushed back against those assessments, characterizing the first-round submission figures as a strong endorsement of the policy framework.

"When we said reports of ‘no takers’ were premature, we were confident that industry would respond and it has, decisively," said Alok Kumar Singh, Advisor (Projects) at the Ministry of Coal. "Seven applications in the very first round, including from some of India’s largest industrial houses and public sector undertakings, are a clear vote of confidence in the scheme and in India’s coal gasification mission. The market has spoken, and it has spoken loudly." A ministry spokesperson confirmed that all seven submissions will now undergo structured technical and financial screening against scheme criteria and request for proposal (RFP) guidelines.

Approved by the Union Cabinet on May 13, 2026, the coal gasification scheme operates with a total financial budget of Rs 37,500 crore. Under the policy structure, successful applicants receive financial incentives covering up to 20% of the eligible capital costs for plant equipment and machinery, subject to established cap limits for specific project categories.

The central government projects that the subsidy outlay will catalyze total industrial investments ranging between Rs 2.5 lakh crore and Rs 3 lakh crore across approximately 25 individual gasification projects. Ministry estimates indicate that the resulting industrial buildout could generate nearly 50,000 direct and indirect jobs across plant construction, raw material handling, and downstream chemical processing. The current scheme expands upon India's National Coal Gasification Mission and an earlier Rs 8,500-crore financial incentive package approved in January 2024, under which eight gasification projects are actively being executed.

The primary macro objective driving the government's gasification agenda is reducing India's heavy exposure to foreign energy imports and imported industrial raw materials. Coal gasification converts domestic coal or lignite into syngas—a composite mixture predominantly made of carbon monoxide and hydrogen—which serves as a foundational building block for manufacturing urea, methanol, ammonia, synthetic natural gas, and hydrogen.

Data published by the Ministry of Coal indicates that India spent approximately Rs 2.77 lakh crore (Rs 2.77 trillion) during the 2024-25 fiscal year on imported shipments of liquefied natural gas (LNG), urea, ammonia, and methanol. By establishing domestic syngas production complexes, the ministry aims to substitute volatile chemical imports with domestically processed fuel and fertiliser inputs, shielding industrial supply chains from international price shocks.

The Rs 37,500-crore initiative is designed to deliver 75 million tonnes (MT) of operational coal gasification capacity. This capacity target serves as the cornerstone for India's wider strategic benchmark of achieving 100 MT of annual coal and lignite gasification capacity by 2030.

Following the close of the first bidding phase on September 7, the Ministry of Coal immediately launched the second application tranche on September 8, 2026. The ministry has established a rolling application framework with submission windows opening at two-month intervals, allowing prospective project developers to submit bids as their pre-feasibility studies, technology partnerships, environmental clearances, and funding arrangements reach operational readiness.

With the opening application window closed, ministry evaluation committees will analyze the initial seven bids to verify compliance with technical standards, environmental metrics, and financial capability. A ministry spokesperson noted that substantial preparatory work is required prior to bidding, and several major commercial entities currently finalizing feasibility studies are expected to participate in subsequent application windows.

The rollout marks a structured transition toward converting India's abundant domestic coal reserves into clean industrial chemical inputs. As evaluation proceeds for the initial cohort, subsequent bi-monthly bidding windows will determine whether corporate investment matches the government's long-term target of 25 operational gasification plants nationwide.