EoI floated for Rs 13,000 cr coal gasification project by CIL-Gail JV

An Expression of Interest (EoI) for shortlisting licensors of coal gasification technology for a proposed coal-based synthetic natural gas (SNG) plant in West Bengal was floated by the Gail and Coal India Limited (CIL) joint venture responsible for promoting the project, an official said on Monday.

The project, valued at an estimated amount of Rs 13,052 crore, considering a debt-equity ratio of 70:30, was approved by the Cabinet, and coal for the plant will be supplied by CIL's subsidiary, Eastern Coalfields Ltd.

Coal India will hold a 51 per cent stake in the JV, while Gail will have a 49 per cent share.

"The EoI, floated by Projects & Development India Limited (PDIL) on behalf of the JV, seeks responses from internationally reputed technology licensors with the requisite coal gasification technology, willing to provide it for the commercial production of SNG," the official told PTI.

The document mentions, "The proposed JV of Gail & CIL intends to set up an 80,000 NM3/hr synthetic natural gas plant at Eastern Coalfields Ltd in Bardhaman, West Bengal, using the surface coal gasification route."

On August 5, Coal India signed a joint venture agreement with Gail (India) Limited for this coal-to-SNG plant. The last date for the EoI submission is October 15.

Earlier, in February 2024, Coal India had signed a similar agreement with Bharat Heavy Electricals Limited (BHEL) for India's first commercial-scale ammonium nitrate plant through surface coal gasification technology.

A joint venture company, Bharat Coal Gasification and Chemicals Limited (BCGCL), has been formed to implement that project in Odisha.

The Ministry of Coal aims to promote coal gasification with a target of 100 million tonnes of coal gasification by 2030.

The Union government will offer financial incentives of Rs 8,500 crore under three categories for Coal/lignite gasification project to support green fuel.