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Current Affairs/Governance
GS2 · Governance8 Jul 2026 · PIB

Ministry of Coal Invites Applications under the ₹37,500 Crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects

The Ministry of Coal has launched a ₹37,500 crore scheme to promote surface coal/lignite gasification projects, aiming to enhance value addition and reduce import dependence in India's energy sector.

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Quick Revision

Prelims-testable facts

  • 01The Ministry of Coal has approved a ₹37,500 crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects.
  • 02The Scheme aims to enhance value addition and reduce import dependence in the energy and chemical sectors.
  • 03The Scheme Guidelines were issued on 25 June 2026, subsequent to its approval on 13 May 2026.
  • 04A Request for Proposal (RFP) was published on 7 July 2026, inviting eligible applicants to submit proposals.
  • 05The last date for submission of applications under the Scheme is 7 September 2026.
  • 06Prospective applicants and stakeholders can participate in a Pre-Application Conference on 20 July 2026.

Trap alerts

  • Most people think the Scheme was approved in 2025, but actually it was approved on 13 May 2026.
  • Most people think the total financial outlay for the Scheme is ₹37 lakh crore, but actually it is ₹37,500 crore.

Mains Practice Question

Critically examine the potential benefits and challenges associated with promoting surface coal/lignite gasification projects in India.

250 words

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Prelims Practice MCQs

Single facteasy

Which ministry is inviting applications under the Scheme for Promotion of Surface Coal/Lignite Gasification Projects?

  • A.Ministry of Petroleum and Natural Gas
  • B.Ministry of Coal
  • C.Ministry of Power
  • D.Ministry of New and Renewable Energy

The Ministry of Coal is the nodal ministry for coal-related initiatives, including this ₹37,500 crore scheme.

Single factmedium

When were the Scheme Guidelines issued by the Ministry of Coal?

  • A.13 May 2026
  • B.25 June 2026
  • C.7 July 2026
  • D.20 July 2026

The Scheme Guidelines were issued on 25 June 2026, providing clarity on the scheme's provisions and application process.

Single facthard

On which date will a Pre-Application Conference be held by the Ministry of Coal?

  • A.7 July 2026
  • B.20 July 2026
  • C.25 June 2026
  • D.13 May 2026

The Pre-Application Conference will be held on 20 July 2026, providing an opportunity for stakeholders to clarify their queries.

Multiple statementsmedium

Consider the following statements regarding Ministry of Coal's Scheme for Promotion of Surface Coal/Lignite Gasification Projects: 1. The Ministry of Coal approved the Scheme on 13 May 2026. 2. The total financial outlay of the Scheme is ₹1,50,000 crore. 3. The last date for submission of applications is 21 August 2026. How many of the above statements are correct?

  • A.Only one
  • B.Only two
  • C.All three
  • D.None

Statement-1 is correct because the text states that the Ministry approved the Scheme on 13 May 2026. Statement-2 is incorrect because the total financial outlay of the Scheme is actually ₹37,500 crore, not ₹1,50,000 crore. Statement-3 is incorrect because the last date for submission of applications is actually 7 September 2026, not 21 August 2026.

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