Business · India Bureau
Adani, NTPC vie for stake in India's ₹37,500-crore coal gasification push
Five major industrial players have submitted bids for India's ambitious coal gasification scheme, signalling strong corporate interest in converting coal into high-value chemical products. The government initiative aims to reduce import dependence while creating new revenue streams from domestic coal reserves.
LSN India ·
India's coal gasification initiative has attracted applications from some of the country's largest energy and industrial conglomerates, including Adani Enterprises and NTPC, according to government records. The Centre's ₹37,500-crore scheme has received seven applications spanning projects focused on urea production, syngas generation, and synthetic gas creation.
Beyond Adani and NTPC, three other applicants have stepped forward: Talcher Fertilisers, Gallantt Ispat, and Shyam Sel & Power. The competition underscores growing corporate confidence in coal gasification as a viable pathway to produce chemicals and fuels domestically, potentially curbing India's reliance on imports for fertilisers and other critical materials.
Coal gasification converts coal into synthesis gas, a mixture of carbon monoxide and hydrogen that serves as a feedstock for producing ammonia-based fertilisers, methanol, and other chemicals. The scheme represents a strategic shift in how India's vast coal reserves are utilised, moving beyond traditional power generation towards higher-value industrial applications.
The government's backing of coal gasification projects aligns with India's broader energy security and industrial policy objectives. By encouraging domestic production of urea and synthetic fuels, the initiative seeks to strengthen self-reliance while addressing structural import pressures that have strained the country's fiscal position in recent years.