GAIL, Coal India Form JV for Natural Gas Infrastructure Project

28 Mar 2025 CW Team

GAIL (India) and Coal India have announced the formation of a joint venture to develop a coal-to-synthetic natural gas (SNG) project in the eastern coalfields. The initiative will be undertaken through a newly established subsidiary named Coal Gas India.

Both state-owned Maharatna companies disclosed the development through separate exchange filings on 25 March. Coal Gas India Limited has been set up with an authorised share capital of Rs 110 million and an initial paid-up capital of Rs 1 lakh. Of this, Coal India has contributed Rs 51,000, while GAIL has contributed Rs 49,000.

The Ministry of Corporate Affairs has issued the certificate of incorporation for Coal Gas India, formally registering the entity under Indian corporate laws. The shareholding structure reflects Coal India’s majority stake with 5,100 equity shares, each valued at Rs 10, and GAIL’s holding of 4,900 equity shares of the same value. This gives Coal India a 51 per cent ownership in the joint venture, with GAIL holding the remaining 49 per cent.

The primary objective of the joint venture is to implement the coal-to-SNG project and facilitate the utilisation of the synthetic gas produced, aligned with prevailing market conditions. This project is expected to contribute to India's energy diversification efforts and reduce reliance on traditional fossil fuels.

On the day of the announcement, share prices of both companies declined. Coal India's stock dropped by 1.84 per cent, closing at Rs 398.40, marking its second consecutive day of losses. Meanwhile, GAIL India’s share price fell by 2.07 per cent to Rs 177.55, ending its five-day winning streak.

News source: Business World

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..

Gujarat Pushes Biogas Growth With 193 Operational Units

Gujarat has operationalised 193 biogas plants across the state and is planning to add 60 more units as part of a broader push to scale up clean and sustainable energy solutions. The existing plants, established under various government-supported schemes, process organic waste including cattle dung and agricultural residue to produce biogas and a nutrient-rich slurry. The output is mainly used for cooking and other energy needs in rural and semi-urban communities, while also improving local waste management practices. The Gujarat Energy Development Agency (GEDA) is leading the initiative and is..