NTPC Submits Two Bids in Second Round as India Launches Third Phase of Coal Gasification Scheme

State-owned power producer NTPC Ltd submitted two applications in the second round for incentives to set up coal gasification projects. The Coal Ministry announced these filings on Tuesday alongside the launch of the third round under the government's ₹37,500-crore incentive scheme, which also opened on November 10. NTPC applied for incentives to produce urea, methanol and dimethyl ether. In the first round, the company sought support to set up a synthetic natural gas production project. Seven applications came in during that initial round, including three from Adani Enterprises for urea production, while other proposals covered synthetic natural gas and direct reduced iron. Atanu Mukherjee, Chief Executive Officer of Dastur Energy, described NTPC's continued participation as encouraging. However, he noted that the limited response in the second round points to the need for schemes that create commercially viable and bankable projects to draw wider private investment. He added that lenders remain cautious about technology, construction and operating risks due to limited domestic commercial precedents.

Context

India has set a target of gasifying 100 million tonnes of coal by 2030 to promote cleaner ways to use the fossil fuel. Successive rolling rounds are designed to widen industry participation and accelerate the adoption of these technologies.