To advance India’s energy sector, Coal India Limited (CIL) and GAIL (India) Limited (GAIL), two leading Maharatna CPSEs, have entered into a landmark joint venture agreement to establish a Coal to Synthetic Natural Gas (SNG) plant utilizing surface coal gasification (SCG) technology. This ambitious project is part of the National Coal Gasification Mission and aims to harness the chemical properties of coal in an environmentally friendly manner.
The SNG plant, set to be located in the Raniganj area of Eastern Coalfields Limited, West Bengal, will have a production capacity of 80,000 Nm3 per hour of Synthetic Natural Gas, translating to an annual output of 633.6 million Nm3. To achieve this, the plant will require 1.9 million tonnes of coal annually, which will be supplied by CIL.
Synthetic Natural Gas (SNG), primarily composed of methane (CH4), serves as a crucial feedstock for producing various chemicals and fertilizers. The new plant will play a pivotal role in securing raw materials, reducing the country’s dependency on natural gas imports, and promoting the Atmanirbhar Bharat mission.
The joint venture agreement was signed by Debasish Nanda, Director (Business Development) CIL, and R.K. Singhal, Director (Business Development) GAIL, in a ceremony graced by M. Nagaraju, Additional Secretary, Ministry of Coal.
In his address, Nagaraju highlighted the project’s potential as a role model for future coal gasification initiatives, emphasizing the need for more such projects to minimize carbon emissions. He assured that the government would provide all necessary support, including financial assistance, to ensure the project’s success.
In line with this commitment, the government has floated Request for Proposals (RFPs) inviting eligible bidders for financial incentives amounting to Rs. 8500 crores under three categories for coal/lignite gasification projects. The submission deadline for these proposals is November 11, 2024.
S.K. Gupta, Chairman & Managing Director of GAIL, lauded the collaboration between CIL and GAIL, expressing optimism about the project’s future and calling for continued government support. Shri Pankaj Jain, Secretary of the Ministry of Power & Natural Gas, underscored the importance of alternative uses of coal, such as coal gasification, in achieving the country’s emission targets.
The detailed feasibility report for the plant, being prepared by Projects and Development India Limited (PDIL), has been prioritized to expedite the project’s progress. Debasish Nanda extended his gratitude to the officials from the Ministry of Coal, the Ministry of Power & Natural Gas, CIL, GAIL, and PDIL for their efforts in bringing this project to fruition.
