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Key Points

5 points
1

Funding allocated: Indian rupees 37,500 crore.

2

First‑round applications received: seven.

3

Key applicants: Adani Enterprises, NTPC, Talcher Fertilisers, Gallantt Ispat, Shyam Sel & Power.

4

Target products from coal gasification: urea, methanol, ammonia, hydrogen, synthetic natural gas.

5

Objectives: lower import dependence, improve energy security, generate jobs, and promote cleaner coal technologies.

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Summary

Seven major industrial firms, including Adani Enterprises and NTPC, submitted applications in the first round.

The syngas can be processed into fertilizers, fuels, hydrogen and synthetic natural gas, reducing the need for imports.

The government expects the scheme to create significant employment and strengthen energy security.

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New Words to Learn

15 words
coal gasification
the process of turning coal into a gas that can be used to make other products
syngas
short for synthetic gas, a mixture created from coal that serves as a building block for many chemicals
urea
a nitrogen‑rich fertilizer used to help crops grow
methanol
a type of alcohol used as a fuel and in chemical manufacturing
ammonia
a chemical compound used mainly for making fertilizer
hydrogen
the lightest element, used as a clean‑energy fuel
synthetic natural gas
gas produced from coal that can replace natural gas from other countries
import
bringing goods or services from another country
liquefied natural gas
natural gas that is cooled into a liquid so it can be shipped easily
crore
a unit equal to ten million in the Indian numbering system
lignite
a soft, brownish type of coal
direct reduced iron
a method of producing iron using gas instead of melting the ore
energy security
ensuring a reliable and affordable supply of energy for a country
import substitution
producing goods domestically rather than buying them from abroad
clean coal technologies
techniques that aim to reduce pollution and emissions from coal use
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