Bharat Petroleum Corporation Ltd (BPCL) on Thursday said it has approved the formation of a joint venture company with Coal India Ltd (CIL) to set up a coal gasification project at Western Coalfields in Maharashtra.
Under the proposed structure, Coal India Ltd will hold 51 per cent equity, while BPCL will have 49 per cent. The JV will be responsible for constructing, operating and maintaining the coal gasification project.
“The collaboration aims to leverage Coal India’s domestic coal production capabilities and BPCL’s expertise in refining and gas marketing. The proposed project will produce synthetic natural gas (SNG), which is intended to serve as an indigenous alternative to imported natural gas,” a regulatory filing noted.
Details relating to the total project cost, capital investment, share issue price, and consideration will be finalised after completion of the feasibility study and the Detailed Project Report (DPR) and will be disclosed subsequently, a statement read.
National Coal Gasification Mission
The National Coal Gasification Mission aims to achieve 100 MT of coal/lignite gasification by 2030, leveraging India’s large coal reserves to produce value‑added chemicals, fuels and fertilisers rather than direct burning.
In January 2024, the government approved a coal/lignite gasification financial assistance scheme with an outlay of about ₹8,500 crore; Category I earmarks ₹4,050 crore for PSU/JV projects (including Coal India JVs), with up to ₹1,350 crore or 15 per cent of capex per project as viability gap support.
Coal India is implementing four coal gasification projects in partnership with other CPSUs.
These include the Talcher coal-based ammonia-urea complex in Odisha being developed by Hindustan Urvarak & Rasayan Limited (HURL), which is expected to be commissioned around FY 2027-28. In addition, three coal gasification projects are being undertaken through joint ventures of Coal India Limited at Lakhanpur in Odisha, Bardhaman in West Bengal, and Chandrapur in Maharashtra, with commissioning currently targeted for FY 2029-30.
