State-owned Coal India Limited (CIL) has officially announced the incorporation of a new subsidiary, Coal Gas India Ltd, aimed at establishing a coal-to-synthetic natural gas (SNG) business. The subsidiary will focus on producing SNG and other products from synthetic gas (Syn Gas), after conducting necessary studies and due diligence.
The new venture will cover a wide array of activities, including manufacturing SNG, producing organic and inorganic chemical compounds, and establishing plants and infrastructure. Additionally, the company will engage in captive coal mining, coal beneficiation, and importation of coal equipment to support these operations.
This development follows the joint venture agreement signed between Coal India Ltd and GAIL last year, marking a significant step toward venturing into the coal-to-SNG business. The coal ministry also granted approval for the formation of the joint venture with support from DIPAM and NITI Aayog.
Coal India, which dominates over 80% of India’s coal production, aims to diversify its business portfolio with this new initiative.
