The Ministry of Coal in India will open applications on November 10 for the second round of its Rs 37,500-crore ($3.99 billion) scheme to promote gasification of surface coal and lignite, with the deadline for submitting proposals falling on November 9.

A ministry notice required companies to file applications online through the MSTC portal by 5:30 pm on November 9. Where applicable, hard copies of documents must also reach the ministry by the same deadline.

The opening will be held at 10:30 am on November 10 at the ministry's office in New Delhi. Both applications submitted online and physical applications received by its Coal Controllerate section will be opened.

The second round follows the first, which attracted seven applications from five companies, including NTPC, Adani Enterprises, Gallantt Ispat, Shyam Sel and Power, and Talcher Fertilizers.

Close attention will be paid to the second-round opening, given that the ministry described the first-round response as a vote of confidence in the government's coal gasification programme. The programme seeks to encourage companies to convert domestic coal and lignite into higher-value products.

The Union Cabinet approved the scheme in May 2026 with a financial outlay of Rs 37,500 crore. It aims to support the development of 75 million tonnes per annum (Mtpa) of coal gasification capacity by 2030 and to contribute to the country's broader target of achieving 100 Mtpa of such capacity by the same year.

Coal gasification involves converting coal into syngas, which can then be used to manufacture methanol, ammonia, urea, hydrogen and synthetic natural gas.

The Indian government intends to use the programme to reduce India's dependence on imports of liquefied natural gas, urea, ammonia, methanol and other high-value industrial feedstocks.

The ministry noted that imports of these products together amounted to about Rs 2.77 trillion in FY2024-25. The scheme is expected to catalyze investments of Rs 2.5-3 trillion and generate direct and indirect employment across the value chain.

It builds on an earlier financial incentive scheme worth Rs 8,500 crore, approved in January 2024, under which eight coal gasification projects are already under implementation.

After the deadline, second-round applications will be opened for scrutiny. Up to two representatives per application may attend the opening, the ministry said.