CIL & GAIL sign JV for coal to the SNG plant in West Bengal

06 Aug 2024

CIL said on Monday that it has entered into a joint venture agreement with GAIL (India) Ltd to establish a coal-to-synthetic natural gas project in West Bengal. While Coal India Ltd (CIL) will hold a 51 percent stake in the joint venture, GAIL, the nation's largest gas transportation and distribution company, will hold a 49 percent stake.

The joint venture shall be registered as a private limited company. CIL said that the initial paid-up share capital is Rs 1 lakh, according to a BSE filing. The registered office of the joint venture will be in West Bengal, and CIL and GAIL will each have the right to nominate three executives as directors of the joint venture.

Earlier this year, the Cabinet Committee on Economic Affairs approved setting up a coal-to-synthetic natural gas project through a joint venture between CIL and GAIL, as well as a coal-to-ammonium nitrate project through a venture between CIL and BHEL.

CIL will establish two coal gasification plants in order to achieve its target of 100 MT of coal gasification by 2030. CIL is responsible for more than 80 percent of the domestic coal output.