GAIL (India) Limited and Coal India Ltd (CIL) have issued an Expression of Interest (EoI) to select licensors for coal gasification technology for a planned coal-based synthetic natural gas (SNG) plant in West Bengal. The joint venture aims to shortlist technology providers capable of supporting the commercial production of SNG, marking a significant step in India’s push for cleaner energy alternatives.
The project, which has an estimated cost of ₹13,052 crore, has received cabinet approval, and coal for the plant will be supplied by Eastern Coalfields Ltd, a subsidiary of Coal India. In the joint venture, Coal India will hold a majority 51% stake, while GAIL will own the remaining 49%.
According to the EoI issued by Projects and Development India Ltd (PDIL) on behalf of the JV, responses are sought from internationally recognized technology licensors with expertise in coal gasification processes. The proposed plant is designed to produce 80,000 NM3/hr of synthetic natural gas using surface coal gasification technology and will be located in Bardhaman, West Bengal. The deadline for EoI submissions is set for October 15, 2024.
This initiative follows a similar agreement signed in February 2024 between Coal India and Bharat Heavy Electricals Ltd (BHEL) for India’s first commercial-scale ammonium nitrate plant utilizing surface coal gasification technology. That project, to be executed through Bharat Coal Gasification and Chemicals Ltd (BCGCL), is based in Odisha.
India’s Ministry of Coal has set an ambitious target of achieving 100 million tons of coal gasification by 2030, promoting a transition toward cleaner and more sustainable energy solutions. This SNG project is a critical part of those efforts, leveraging domestic coal resources to reduce reliance on imported natural gas.