Bharat Petroleum Corporation (BPCL) and Coal India (CIL) plan to invest Rs 12,000-crore in a coal gasification project in Chandrapur, Maharashtra. CIL will hold a 51 percent stake in the joint venture (JV), while BPCL will own 49 percent.

The project aims to align with India’s National Coal Gasification Mission, targeting 100 million tonne of coal gasification by 2030. The JV will operate under a debt-to-equity structure of either 70:30 or 65:35. A detailed feasibility report will precede the project’s initiation. "Work on the project will start after that," an industry official stated.

The initiative aims to produce 1.83 mmscmd of synthetic natural gas (SNG) through coal gasification for both internal and commercial purposes. Coal gasification technology transforms coal into SNG, offering a cleaner energy alternative and enabling applications beyond traditional coal uses like power generation and heating. Additionally, it can generate hydrogen for transportation, industrial processes, and power generation.

Coal India and BPCL's project in Maharashtra will be eligible for a VGF of Rs 1,350 crore. This project exemplifies India’s commitment to advancing cleaner energy technologies while maximising the utility of its coal resources. Both companies have yet to officially comment on the development.

Also, BHEL and CIL have joined hands to set up an ammonium nitrate plant through SCG to revolutionise indigenous technology at the Lakhanpur area of Mahanadi Coalfields, Odisha. The plant's backward integration would help in securing the raw material, reducing the import dependency on ammonium nitrate. Besides, CIL and GAIL's joint venture project in Sonepur Bazari, West Bengal, has been awarded Rs 1,350 crore in the form of VGF.