New Delhi, March 12 A parliamentary committee has raised concerns about significant delays in spending under the scheme for promoting coal and lignite gasification, noting zero spending for most of 2025-26 despite a revised allocation of Rs 285 crore, and suggested a time-bound spending framework with quarterly milestone verification.
The standing committee on coal, mines and steel believes that the scheme's outlay was reduced from Rs 300 crore at the Budget Estimates (BE) for 2025-26 to Rs 285 crore at the Revised Estimates (RE) stage due to milestone-based needs, with no expenditure incurred and even a single eligible project pending reimbursement formalities.
"The committee noted that no expenditure was incurred for most of the financial year, with even a single eligible project awaiting the fulfillment of reimbursement formalities," it said.
The panel further noted that against a Revised Estimate of Rs 285 crore for 2025-26, the Budget Estimate for 2026-27 was sharply raised to Rs 3,525 crore.
The committee, therefore, recommended that the Ministry of Coal 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, fertilizers, SNG, etc.