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
What is the last date for applications under the ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects?
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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.
Under the 2026 coal/lignite gasification scheme, the financial incentive is capped at what share of the cost of plant and machinery?
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Correct answer: C — 20%
The Cabinet release says the incentive is a maximum of 20% of the cost of plant and machinery.
The coal gasification scheme approved by the Cabinet in May 2026 advances India's national target of gasifying how much coal by 2030?
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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.