CIL and GAIL Launch Coal-to-SNG Project

State-owned CIL has entered into a joint venture with GAIL (India) Ltd to set up a coal-to-synthetic natural gas project in West Bengal. CIL will hold 51% and GAIL 49% in the JV, which will be incorporated as a private limited company. The registered office will be in West Bengal.

In a significant move, State-owned Coal India Ltd (CIL) announced on Monday that it has entered into a joint venture with GAIL (India) Ltd to establish a coal-to-synthetic natural gas (SNG) project in West Bengal.

Under the agreement, CIL will hold a 51% stake in the joint venture, while GAIL, the nation's leading gas transportation and distribution company, will possess the remaining 49%. The joint venture will be formally registered as a private limited company, with an initial paid-up share capital of Rs 1 lakh, as per a BSE filing by CIL.

The registered office for the joint venture will be situated in West Bengal, with both CIL and GAIL having the right to nominate three executives each as directors of the venture. This initiative forms part of CIL's larger strategy to set up coal gasification plants to achieve the goal of 100 MT coal gasification by 2030.