A parliamentary committee has flagged significant delays in expenditure under the scheme for promotion of coal, lignite gasification, noting zero spending for most of 2025-26 despite a revised allocation of ₹285 crore, and suggested a time-bound spending framework with quarterly milestone verification.
The standing committee on coal, mines and steel was of the view that the scheme's outlay was brought down from ₹300 crore at Budget Estimates (BE) 2025-26 to ₹285 crore at Revised Estimates (RE) stage due to milestone-based needs, with no expenditure incurred and even a a single eligible project pending reimbursement formalities.
"The committee noted that no expenditure is incurred for most of the financial year, with even a single eligible project awaiting fulfilment of reimbursement formalities," it said.
2 March 2026
Get the latest issue of Outlook Business
The panel further noted that against a Revised Estimate of ₹285 crore in 2025-26, the Budget Estimate for 2026-27 was sharply raised to ₹3,525 crore.
The committee, therefore, recommended that the coal ministry adopt a time-bound expenditure projection framework, supported by quarterly milestone verification and independent financial closure certification.
It also recommended that the ministry encourage the use of indigenous high-ash gasification technology in line with NITI Aayog recommendations, particularly through category-III projects designed for demonstration and scale-up of indigenous technologies.
The committee also suggested exploring the feasibility of using Indian high-ash, low-grade coal for gasification projects and providing measurable import substitution for methanol, ammonia, fertilisers, SNG, etc.
