Adani Enterprises Ltd has emerged as the most prominent applicant in the first round of the government’s flagship Rs 37,500-crore scheme to promote surface coal and lignite gasification projects, with three of the seven projects belonging to the company.Other private sector applicants include Gallantt Ispat Ltd and Shyam Sel & Power Ltd which have applied for financial support under the scheme for one project each. State-owned NTPC Ltd and Talcher Fertilisers Ltd, a joint venture of four state-run companies — GAIL, Coal India Ltd (CIL), Rashtriya Chemicals and Fertilizers Ltd (RCF) and Fertilizer Corporation of India Ltd (FCIL) — have also applied for one project each.According to the Ministry of Coal, all three projects submitted by Adani Enterprises are for setting up coal-to-urea gasification plants. Talcher Fertilisers has also proposed a coal-to-urea project, while Gallantt Ispat’s project will produce direct reduced iron (DRI) and syngas. NTPC and Shyam Sel & Power have proposed projects for producing synthetic natural gas (SNG) and syngas, respectively.The applications received in the first round will now undergo a detailed evaluation in accordance with the scheme guidelines and the Request for Proposal (RFP), the ministry said. The government has also opened the second round of the scheme from Tuesday (September 8).Must Read | Expert explains: Why is Kenyan President William Ruto targeting Indian companies?“In accordance with the RFP, the application windows will continue to open at two-month intervals, providing regular opportunities for eligible entities to participate. Several prospective applicants are presently at advanced stages of project preparation and are expected to submit proposals in forthcoming rounds,” it added.The scheme was approved by the Union Cabinet in May, following which the RFP was issued in July.The Rs 37,500-crore scheme seeks to incentivise 25 projects for production of syngas and downstream products, targeting gasification of approximately 75 million tonne (mt) of coal/lignite.Story continues below this adThe new scheme is an addition to the existing viability gap funding scheme worth Rs 8,500 crore approved in 2024 for incentivising coal and lignite gasification projects. As per the government, eight gasification projects are already under implementation under the earlier scheme.While announcing the new scheme in May, the government had said the projects under it will be selected through a transparent and competitive bidding process. Under the scheme, financial incentive will be provided at a maximum of 20% of the cost of plant and machinery to be disbursed in four equal installments.Financial incentive for any single project capped at Rs 5,000 crore; for any single product (except Synthetic Natural Gas and Urea) capped at Rs 9,000 crore; and any single entity group capped at Rs 12,000 crore across all projects.Coal gasification is a thermochemical process of converting coal into synthesis gas (syngas), which is a mixture of fuel-rich gases like carbon monoxide (CO), carbon dioxide (CO2), hydrogen (H2), and methane (CH4). The syngas can be used for producing Synthetic Natural Gas (SNG), electricity generation, energy fuel (methanol and ethanol), ammonia for fertilisers, and chemicals.Story continues below this adThe coal gasification process involves oxidation of coal at higher temperatures and pressures to produce syngas. There are two main types of gasification: Surface gasification and Underground coal gasification (UCG). The present scheme primarily focuses on surface gasification projects.The government push for coal gasification mainly aims at enhancing energy security and reducing dependence on imports of key products such as LNG, urea, ammonia, and methanol. This is considered to have become more significant in the backdrop of growing concerns over disruptions in global energy supplies due to the ongoing West Asia crisis.Notably, India has limited reserves of crude oil and natural gas and is dependent on imports, making it vulnerable to global price volatility and supply disruptions. At the same time, it has the fourth-largest coal reserves globally, with an estimated 389 billion tonnes (bt). Of this, 212 bt are classified as proven reserves, which means they are economically extractable with reasonable certainty based on a detailed Preliminary Feasibility Study.