The Ministry of Coal in collaboration with the Ministry of Power & Natural Gas facilitated a landmark joint venture agreement between two leading Maharatna CPSEs, Coal India Limited (CIL) and GAIL (India) Limited (GAIL).

It marks a major step towards setting of a Coal to Synthetic Natural Gas (SNG) plant using surface coal gasification (SCG) technology.

Debasish Nanda, Director (Business Development) CIL and Shri. R K Singhal, Director (Business Development) GAIL inked the JVA on behalf of CIL and GAIL respectively.

The plant to come up in Raniganjarea of Eastern Coalfields Limited, West Bengalis planned to produce 80000 Nm3 per hour of Synthetic Natural Gas (SNG), the Ministry of Coal said in a statement.

The annual production is slated at 633.6 Million Nm3 per hour which will require 1.9 million tonnes (mts) of coal. The coal will be supplied by CIL.

The synergy and partnership of the two corporate giants is a big step towards National Coal Gasification Mission which facilitates utilization of chemical properties of coal.

Synthetic Natural Gas (SNG) is a fuel gas predominantly consisting of methane, CH4 which is a feedstock for production of various chemicals and fertlizers.

The upcoming plant would help in securing the raw material and reduce import dependency of Natural gas and promoting Atmanirbharmission.

M. Nagaraju, Additional Secretary, Coal, while addressing in the signing ceremony mentioned that the commitment of CIL and GAIL with this project will be a role model.

Gasification is the highest priority area for the Ministry of Coal. India has been blessed with huge reserves of coal and these reserves should be utilized gainful and in environment friendly manner.”

The Additional Secretary stressed the need of more coal gasification project to be planned to minimize the carbon emission.

He also said that all the possible support from government is in place including financial support for viable gap funding. Request for Proposals (RFPs) for inviting eligible bidders (public and private) for financial incentives of Rs. 8500 crores under three categories for Coal/lignite gasification project have been floated on 15.05.2024 for which last date of submission is 11.11.2024.