BPCL and Coal India have approved the formation of a joint venture (JV) to develop a coal gasification project at Western Coalfields in Maharashtra.

The JV aims to produce synthetic natural gas (SNG) as an alternative to imported natural gas, enhancing India's energy security. Coal India will hold a 51 percent stake, while BPCL will own 49 percent. The project will focus on cleaner coal technologies and is expected to reduce India’s dependence on energy imports. BPCL stated that the terms of the definitive agreements, including project costs, investment, and share capital, will be finalised after a detailed feasibility study and project report.

The collaboration will leverage Coal India's strength in coal production and BPCL's expertise in refining and gas marketing. The project aligns with the government's goal to boost energy security, promote sustainable industrial growth, and reduce reliance on foreign energy sources.