NLC India Ltd is taking a fresh look at coal gasification projects, including those based on lignite, after having earlier shelved a proposed lignite-to-methanol project on account of high costs.
The company is currently in discussions with a few consultants to prepare a detailed project report (DPR) for the proposed ventures, its Chairman and Managing Director, Dr Prasanna Kumar Acharya, told businessline on the sidelines of the Bharat Renewable Energy Summit (BRE Summit) 2026, organised by the Ministry of New and Renewable Energy (MNRE) in New Delhi.
The renewed interest in coal gasification is outside the company’s recently approved investment plan of ₹50,000 crore to develop 18 GW of renewable energy capacity by 2032, including 3 GWh of battery energy storage systems (BESS). The investment plan was approved by the company’s board last month.
NLC India currently has 1.8 GW of operational renewable energy capacity and another 2.5 GW under construction, Acharya said. As much as 5 GW of RE projects, including 1 GW of wind, have been won through tenders, he said.
Asked if the 18 GW target lacked ambition, as much of it is already underway, Acharya observed that the RE industry was dynamic and the target could also be revised accordingly.
Separately, the company is also planning to develop a 1 GW pumped storage project (PSP) in Odisha, for which the DPR is under preparation.
The renewed interest in coal gasification marks a reconsideration of an avenue that the company had previously explored but shelved, with project economics proving a major hurdle. Its current discussions with consultants suggest that NLC India is examining the feasibility of a broader range of coal-based gasification opportunities.
Published on November 3, 2026
