In a significant step towards India’s National Coal Gasification Mission, two Maharatna CPSEs, Coal India Limited (CIL) and GAIL (India) Limited (GAIL), have signed a joint venture agreement to set up a Coal to Synthetic Natural Gas (SNG) plant. This collaboration, facilitated by the Ministry of Coal in conjunction with the Ministry of Power & Natural Gas, aims to harness the potential of surface coal gasification (SCG) technology.
The forthcoming plant, to be located in the Raniganj area of Eastern Coalfields Limited in West Bengal, is projected to produce 80,000 Nm³ per hour of Synthetic Natural Gas (SNG), translating to an annual output of 633.6 million Nm³. To achieve this, the plant will consume 1.9 million tonnes of coal, which CIL will supply.
The joint venture, signed by Debasish Nanda, Director (Business Development) CIL, and RK Singhal, Director (Business Development) GAIL, symbolises a strategic partnership between the two corporate giants. M Nagaraju, Additional Secretary, Ministry of Coal, lauded the venture as a model for future projects, emphasising the ministry’s commitment to coal gasification as a priority for environmentally sustainable utilisation of India’s abundant coal reserves. He also highlighted the government’s financial support for viable gap funding and the issuance of Request for Proposals (RFPs) on May 15, 2024, for financial incentives of ₹8,500 crores for coal/lignite gasification projects, with a submission deadline of November 11, 2024.
At the signing ceremony, SK Gupta, Chairman & Managing Director of GAIL, expressed the need for continued government support to advance the project, while Pankaj Jain, Secretary, Ministry of Power & Natural Gas, underscored the importance of environmentally friendly coal utilisation projects to meet India’s emission targets. Jain emphasised the potential of SCG technology to convert coal into valuable Syn gas, which can be further processed into synthetic natural gas for use as an alternative to natural gas and as a feedstock for downstream chemical production and power generation.
Debasish Nanda concluded the ceremony by instructing Projects and Development India Limited (PDIL) to prioritise the detailed feasibility report preparation for the plant. He extended gratitude to officials from the Ministries of Coal and Power & Natural Gas, as well as representatives from CIL, GAIL, and PDIL for their presence and support.
This joint venture represents a significant milestone in India’s journey towards energy self-sufficiency and environmental sustainability, promoting the Atmanirbhar Bharat mission and reducing import dependency on natural gas.
