Sindri: Coal India Limited (CIL) and Hindustan Urvarak & Rasayan Limited (HURL) have signed a non-binding Memorandum of Understanding (MoU) to explore the development of a coal gasification-based ammonia-urea plant at HURL’s Sindri facility in Jharkhand.
The initiative aims to utilise India’s domestic coal resources to produce synthesis gas (syngas), which can be used for ammonia and urea production. The proposed collaboration brings together CIL’s expertise in the coal sector and HURL’s experience in large-scale fertiliser manufacturing.
The MoU was signed on September 29, 2026, in the presence of senior officials and dignitaries from both CIL and HURL.
What the Coal India-HURL MoU Covers
Under the agreement, the two companies will jointly examine the feasibility of developing the proposed plant at Sindri.
The initial areas of assessment include:
- Technical feasibility of the proposed project
- Commercial viability of the plant
- Implementation and execution modalities
- Preparation of a Preliminary Feasibility Report (PFR)
The PFR will help assess whether a coal gasification-based urea production facility can be developed at the Sindri location.
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Coal Gasification to Support Fertiliser Production
Coal gasification involves converting coal into synthesis gas or syngas, which can subsequently be used to produce ammonia and other industrial products.
For fertiliser production, the technology can provide an alternative feedstock route for producing ammonia and urea. The proposed project is therefore aimed at making greater use of domestic coal resources while exploring ways to reduce dependence on imported natural gas and other external feedstocks.
Coal gasification can also be used to produce products such as:
- Synthetic natural gas (SNG)
- Methanol and ethanol
- Ammonia
- Petrochemicals
These applications make coal gasification an important technology in efforts to optimise domestic resources and strengthen energy and fertiliser security.
Project to Assess Import Dependence and Energy Security
The proposed coal gasification-based urea project assumes significance amid efforts to strengthen India’s fertiliser security and reduce dependence on imports.
Using domestic coal as a feedstock could provide an alternative route for ammonia and urea production. The initiative also aligns with broader efforts to promote resource optimisation, energy security and greater self-reliance under the Atmanirbhar Bharat approach.
However, the MoU is non-binding and does not create any immediate financial or contractual obligation for either company. Further decisions regarding the project will depend on the outcome of the feasibility assessment and the Preliminary Feasibility Report.
Coal India’s Role in the Project
Coal India will bring its expertise in the coal sector to the proposed collaboration. The company accounts for more than 80% of India’s domestic coal production and has been involved in efforts to promote coal gasification and alternative uses of coal.
The development also comes against the backdrop of the National Coal Gasification Mission, which has set a target of achieving 100 million tonnes of coal gasification capacity by 2030.
Coal India has informed the stock exchanges about the MoU in accordance with applicable SEBI regulations.
HURL to Bring Fertiliser Manufacturing Expertise
HURL will contribute its experience in the fertiliser sector to the proposed project. The company operates fertiliser manufacturing facilities and has a focus on the production of urea and other fertiliser products.
The proposed collaboration could combine CIL’s domestic coal expertise with HURL’s experience in large-scale fertiliser manufacturing to examine the possibility of producing urea through coal gasification at Sindri.
Next Step for Coal Gasification-Based Urea Plant
The immediate focus will remain on conducting technical and commercial assessments and preparing the Preliminary Feasibility Report.
The findings of this assessment will determine the project’s viability and help establish the appropriate implementation approach. Any further investment or development decision would follow the outcome of these evaluations.
About Coal India Limited
Coal India Limited (CIL) is a Maharatna public sector undertaking and one of the world’s major coal-producing companies. It accounts for more than 80% of India’s domestic coal production and supplies coal to key sectors including power, steel and other industries.
About Hindustan Urvarak & Rasayan Limited
Hindustan Urvarak & Rasayan Limited (HURL) was incorporated in 2016 as a joint venture promoted by Coal India Limited, NTPC Limited and Indian Oil Corporation Limited, with Fertilizer Corporation of India Limited (FCIL) and Hindustan Fertilizer Corporation Limited (HFCL) as the other partners. HURL is engaged in the production of fertilisers, including urea, and operates major fertiliser manufacturing facilities in India.
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