BPCL, Coal India To Form JV For Coal Gasification

The proposed project will be developed at Western Coalfields Limited in Maharashtra, where the joint venture company will construct, operate and maintain the coal gasification facility, BPCL said in a stock exchange filing. Coal India will hold a majority stake of 51 per cent in the JV, while BPCL will own the remaining 49 per cent.

Coal India said details relating to share issuance and capital subscription will be finalised once the definitive agreement is signed or when the final investment decision is taken by the board after completion of the detailed feasibility study, whichever is later.

According to Coal India, the collaboration is designed to combine its strength in domestic coal production with BPCL’s expertise in refining and gas marketing. The project will produce synthetic natural gas, supporting cleaner coal technologies, improving energy security and reducing India’s dependence on natural gas imports.

Earlier, Coal Minister G Kishan Reddy told the Lok Sabha that Western Coalfields has undertaken a coal-to-synthetic natural gas project at Chandrapur in Maharashtra with a central public sector undertaking, with commissioning targeted for FY30.

Coal India has provisionally allocated coal linkages of 3.9 million tonnes to its joint venture companies. In addition, letters of intent for 1.45 million tonnes have been issued to consumers under the non-regulated sector linkage auction scheme for syngas production linked to coal gasification.

In January 2025, the Ministry of Coal approved a financial incentive scheme with an outlay of Rs 85 billion to support coal and lignite gasification projects across the country.