Leading Maharatna public sector enterprises, Coal India Limited and GAIL (India) Limited, have entered into a significant joint venture to establish a plant for converting coal to synthetic natural gas (SNG) using surface coal gasification technology. This announcement was made by the Ministry of Coal.

The proposed plant will be located in the Raniganj area of Eastern Coalfields Limited in West Bengal and is projected to produce 80,000 Nm3 per hour of SNG. Annually, this amounts to 633.6 million Nm3, requiring 1.9 million tonnes of coal supplied by Coal India Ltd (CIL).

According to a statement by the ministry, "This partnership between two major corporations marks a significant advancement towards the objectives of the National Coal Gasification Mission, which aims to leverage the chemical properties of coal".

SNG, primarily composed of methane (CH4), serves as a feedstock for producing various chemicals and fertilizers. The new plant is expected to secure raw materials and reduce India's dependency on imported natural gas, aligning with the Atmanirbhar mission. Additionally, it will contribute to minimizing carbon emissions as part of the nation’s climate change mitigation efforts.

The joint venture agreement was signed by Debasish Nanda, Director of Business Development at CIL, and R K Singhal, Director of Business Development at GAIL.

M. Nagaraju, Additional Secretary of Coal, emphasized during the signing ceremony that the dedication of CIL and GAIL to this project would set a benchmark. "Gasification is a top priority for the Ministry of Coal. India’s substantial coal reserves should be utilized in an environmentally friendly manner", he stated.

He underscored the importance of planning more coal gasification projects to reduce carbon emissions and assured full government support, including financial assistance for viable gap funding. On May 15, 2024, Requests for Proposals (RFPs) were issued for financial incentives worth Rs 8,500 crore under three categories for coal/lignite gasification projects, with a submission deadline of November 11, 2024.

Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, remarked that alternative, environmentally friendly uses of coal, such as gasification, should be pursued to meet the country’s emission targets.