The cabinet led by Prime Minister narendramodi has approved scheme for promotion of Coal Gasification projects of Government PSUs and Private Sector aiming to push indigenous technology and product based gasification plants.
Coal-to-SNG Project at ECL Command Area
The proposal for the establishment of a Coal-to-Synthetic Natural Gas (SNG) Project at Eastern Coalfields Limited (ECL) command area has been approved by the Cabinet Committee on Economic Affairs (CCEA) today. The joint venture (JV) between Coal India Limited (CIL) and GAIL will witness an equity investment of Rs.1,997.08 Crore (±25%) by CIL, maintaining a Debt-Equity Ratio of 70:30. The estimated project capital expenditure stands at Rs.13,052.81 Crore (±25%).
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Coal-to-Ammonium Nitrate Project at MCL Command Area
Simultaneously, the CCEA has given the nod for the Coal-to-Ammonium Nitrate Project at Mahanadi Coalfields Limited (MCL) command area. This project, executed through a JV of CIL and BHEL, will see an equity investment of Rs.1,802.56 Crore (±25%) by CIL, with a Debt-Equity Ratio of 70:30. The estimated project capital expenditure is Rs.11,782.05 Crore (±25%).
Equity Investment Beyond 30%
The Cabinet has also granted approval for CIL to exceed a 30% equity investment of its net worth in both JVs – CIL & GAIL and CIL & BHEL.
Strategic Move Towards Coal Gasification
Coal India Limited (CIL) is gearing up to establish two Coal Gasification Plants in collaboration with GAIL and BHEL. The goal is to achieve 100 MT coal gasification by 2030, aligning with India’s objectives of self-reliance and energy independence.
Milestones Achieved Through MOUs
CIL has inked Memorandums of Understanding (MOUs) with GAIL for the Coal-to-SNG Project at Eastern Coalfields Limited in West Bengal, and with BHEL for the Coal-to-Ammonium Nitrate Project at Mahanadi Coalfields Limited in Odisha. The estimated project costs for these ventures are Rs.13,052.81 Crore (±25%) and Rs.11,782.05 Crore (±25%), respectively, maintaining a debt:equity ratio of up to 70:30.
These ventures mark significant strides towards India’s energy goals, paving the way for advanced technologies in the coal sector.
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