SF Prep Notes

Coal Ministry opens applications under ₹37,500 crore coal/lignite gasification scheme

The Ministry of Coal invited applications on 8 July 2026 under the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects; the last date is 7 September 2026.

Summary

The Ministry of Coal announced on 8 July 2026 that it is inviting applications under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, approved by the Union Cabinet on 13 May 2026 with an outlay of ₹37,500 crore. Scheme guidelines were issued on 25 June 2026 and the Request for Proposal on 7 July 2026; a pre-application conference is set for 20 July and applications close on 7 September 2026. The Cabinet release says the scheme backs the national target of gasifying 100 million tonnes of coal by 2030 and targets gasification of about 75 million tonnes of coal/lignite. Incentives go up to 20% of plant and machinery cost, paid in four milestone-linked instalments, with a cap of ₹5,000 crore per project.

Key facts

Scheme
Scheme for Promotion of Surface Coal/Lignite Gasification Projects
Outlay
₹37,500 crore
Cabinet approval
13 May 2026
Guidelines / RFP
25 June 2026 / 7 July 2026
Pre-application conference
20 July 2026
Last date
7 September 2026
National target (static)
Gasify 100 MT of coal by 2030
Scheme target
About 75 MT of coal/lignite
Incentive
Up to 20% of plant and machinery cost; 4 equal milestone-linked instalments; ₹5,000 crore cap per project
Earlier support
National Coal Gasification Mission (2021); ₹8,500 crore scheme approved January 2024

Practice MCQs 3 questions

Q1

What is the last date for applications under the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects?

Show answer

Correct answer: A — 7 September 2026

Applications close on 7 September 2026; 20 July is the pre-application conference, 7 July the RFP and 25 June the guidelines.

Q2 Advanced

Under the 2026 coal/lignite gasification scheme, the financial incentive is capped at what share of the cost of plant and machinery?

Show answer

Correct answer: C — 20%

The Cabinet release says the incentive is a maximum of 20% of the cost of plant and machinery.

Q3 Advanced

The coal gasification scheme approved by the Cabinet in May 2026 advances India's national target of gasifying how much coal by 2030?

Show answer

Correct answer: D — 100 million tonnes

The national target is 100 MT of coal gasification by 2030; the new scheme itself targets about 75 MT of coal/lignite.

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