+
BPCL, Coal India To Form JV For Coal Gasification
COAL & MINING

BPCL, Coal India To Form JV For Coal Gasification

State-run Bharat Petroleum Corporation Limited has announced plans to form a joint venture with Coal India Limited for a coal gasification project in Maharashtra, aimed at producing synthetic natural gas as a domestic alternative to imported fuel.

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.

State-run Bharat Petroleum Corporation Limited has announced plans to form a joint venture with Coal India Limited for a coal gasification project in Maharashtra, aimed at producing synthetic natural gas as a domestic alternative to imported fuel. 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.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

KPIL announces new business wins worth Rs 22.25 bn

Kalpataru Projects International (KPIL) has secured new orders and a letter of comfort worth approximately Rs 20.31 billion in its power transmission and distribution (T&D) business across India and international markets. Additionally, its Swedish subsidiary, Linjemontage i Grästorp AB, has received an order worth approximately Rs 1.94 billion (SEK 200 million), taking the combined order value to Rs 22.25 billion.Commenting on the order wins, Manish Mohnot, Managing Director and CEO, KPIL, said the new orders reflect customer confidence in the company's execution capabilities and technical ex..

Next Story
Infrastructure Transport

Tiruchi Airport Handles over 20 t of Domestic Cargo in a Month

Tiruchi International Airport has handled more than 20 t of inbound and outbound domestic cargo since the facility was launched in late August. Outbound shipments have exceeded inbound volumes, with private carriers transporting goods to Chennai, Delhi, Bengaluru and Mumbai. The domestic cargo service began after the Bureau of Civil Aviation Security (BCAS), an independent department under the Ministry of Civil Aviation, granted clearance. The facility was introduced to give local businesses a faster route for sending goods to major domestic hubs, reducing their reliance on cargo routed throug..

Next Story
Infrastructure Urban

Gabriel India Forms Joint Venture with Forvia for Advanced Seating

Gabriel India, part of the US$2.6 bn Anand Group, has formed a joint venture with France-based Forvia to bring advanced seating systems and technologies to the Indian automotive market. The partnership expands Gabriel India’s participation in vehicle systems as automotive architectures become more sophisticated and customer requirements evolve. The joint venture, named Faurecia Anand Seating India, combines Forvia’s global seating technology expertise with Gabriel India’s manufacturing capabilities, customer relationships and understanding of the Indian automotive market. Forvia will hol..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code