New Delhi: Bharat Petroleum Corporation Limited (BPCL) has approved the creation of a joint venture (JV) with Coal India Limited (CIL) to develop a coal gasification project at Western Coalfields in Maharashtra. The approval, granted during the Board meeting held on December 18, 2025, is subject to receiving all requisite regulatory clearances. This development follows BPCL’s earlier announcement on December 2, 2024, regarding its proposed collaboration with Coal India.
Joint Venture Structure and Ownership
The proposed JV will be a domestic entity with Coal India holding a 51 percent stake and BPCL owning the remaining 49 percent. The company will be responsible for constructing, operating, and maintaining the coal gasification project at Western Coalfields, Maharashtra.
BPCL stated that key commercial details, including total project cost, partner investments, share structure, authorised capital, and issue price, will be finalised after completing the project feasibility study and preparation of the Detailed Project Report (DPR). These details will be disclosed once definitive agreements are executed and the Board takes the Final Investment Decision.
The company clarified that the JV is not a related party transaction and that the promoter, promoter group, or group companies have no direct interest in the new entity. Board representation and other key terms and conditions will also be finalised and incorporated in the definitive agreement.
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Strategic Rationale and Project Benefits
The collaboration aims to combine Coal India’s domestic coal production expertise with BPCL’s capabilities in refining and gas marketing. The coal gasification project is expected to produce synthetic natural gas (SNG), which will serve as an indigenous alternative to imported natural gas.
BPCL highlighted several anticipated benefits of the JV:
- Promoting clean coal technologies
- Enhancing India’s energy security
- Reducing import dependence on natural gas
- Supporting sustainable industrial growth across the country
The consideration for subscription to the JV’s share capital will be finalised at the time of signing the definitive agreement or upon the Board’s Final Investment Decision after completion of the Detailed Feasibility Study, whichever comes later.
About BPCL
Bharat Petroleum Corporation Limited (BPCL) is a leading Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas. It plays a pivotal role in refining, distribution, and marketing of petroleum products across India. With a strong focus on energy security, sustainable growth, and technological innovation, BPCL continues to support India’s transition towards cleaner and more efficient energy solutions.
