Lok Sabha Question No. 3036 (UNSTARRED), answered on 2026-03-11
Subject: Implementation of Coal Gasification in Punjab
Ministry: COAL
Asked by: Shri Malvinder Singh Kang

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 3036 ANSWERED ON 11.03.2026

## IMPLEMENTATION OF COAL GASIFICATION IN PUNJAB

## 3036.     SHRI MALVINDER SINGH KANG:

Will the Minister of COAL be pleased to state

(a) the current status of implementation of the Coal Gasification Incentive Scheme in Punjab particularly  for  small-scale  industrial  applications  in  the  Anandpur  Sahib  Lok  Sabha Constituency:

(b) the number of applications received and the amount of financial assistance sanctioned under Category-III (Small-Scale/Demonstration Projects) for Micro, Small and Medium Enterprises (MSMEs) clusters in the Hoshiarpur and Rupnagar districts;

(c) the details of specific criteria for Viability Gap Funding (VGF) under the second round of Request for Proposals (RFPs) published in September, 2025;

(d) whether specific criteria for VGF criteria account for the higher operational costs faced by land-locked industrial clusters in Punjab and if so, the details thereof;

(e) whether the Government has received any representations regarding the technical feasibility of coal gasification for brick kiln clusters in the Mohali and Nawanshahr regions and if so, the details thereof; and

(f) the  timeline  by  which  the  Government  is  expected  to  operationalize  pilot  projects  in Northern India to assist MSMEs in transitioning to clean coal technologies?

## ANSWER

## MINISTER OF STATE FOR COAL AND MINES

## (SHRI SATISH CHANDRA DUBEY)

(a): The Coal/Lignite Gasification Financial Incentive Scheme approved by the Government of India is designed to support and promote implementation of coal/lignite gasification projects across the country. This scheme is not State-specific. Currently, no proposal has been received for setting up a coal/lignite gasification project in Punjab or in Anandpur Sahib Lok Sabha Constituency.

(b): No proposal has been received for setting of coal gasification project in the Hoshiarpur and Rupnagar districts.

(c) & (d): The Request for Proposals (RFPs) for the second round of financial incentives under the Coal/Lignite Gasification Financial Incentive Scheme were issued on 30.09.2025 under Category-II and Category-III.

Under Category-II , private sector as well as Government PSUs were allowed to participate for availing lump-sum grant of ₹1000 crores or 15% of capex, whichever is lower, in respect of each project. Under this category, a manufacturing plant of a minimum output of 0.4 million tonnes  per  annum  of  either  single  downstream  product  or  a  combination  of  downstream products through coal gasification could be set up.

Under Category-III , demonstration projects (indigenous technology) or small-scale productbased Gasification Plants could be set up, under which lump-sum grant of ₹100 crores or 15% of capex, whichever is lower, is allowed to the selected entity. The proposal should have a minimum Capex of ₹100 crore and minimum production of 1,500 Nm3/hour of Syngas. To meet  the  qualification  criteria for  demonstration  project,  the  technology  adopted  must  be proved at pilot scale and the capex should be at least ₹ 100 Crores on coal gasification unit. For  small-scale  projects  under  Category-III,  a  plant  with  similar  technology  must  be  in commercial operation anywhere in the world.  The plant must be producing syngas for the purpose of gasification-based products.

The  criteria  for  providing  incentive  under  the  Scheme  is  same  throughout  the  country, including Punjab.

(e): As on date, no such representation has been received.

(f): Under  the  Scheme,  only  one  pilot  project  has  been  approved  as  of  now  which  has  its scheduled  commissioning  in  FY  2029-30.  Further,  proposal  for  another  pilot  project under Category-III has been received in pursuance of advertisement issued on 30.09.2025.

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