The first round of the Centre’s ₹37,500 crore scheme for surface coal and lignite gasification has received seven applications. Applicants include Adani Enterprises, NTPC, Talcher Fertilisers, Gallantt Ispat and Shyam Sel & Power. Proposed outputs include urea, syngas, direct-reduced iron and synthetic natural gas.
Coal gasification converts coal into synthesis gas that can be used to make fuels, chemicals and fertilisers. The government links it to import substitution and a target of 100 million tonnes of coal gasification capacity by 2030. The economic case must still be assessed alongside capital intensity, water use and climate implications.