An expression of interest (EoI) to shortlist licensors of coal gasification technology for a coal-based synthetic natural gas (SNG) plant in West Bengal has been floated by the joint venture GAIL and Coal India Limited (CIL) responsible for promoting the project, an official said on Monday.
The project, valued at an estimated Rs 13,052 crore, considering a debt-equity ratio of 70:30, was approved by the Cabinet, and coal for the plant will be supplied by CIL’s subsidiary Eastern Coalfields Ltd.
Coal India will hold 51 per cent stake in the joint venture, while GAIL will hold 49 per cent stake.
“The expression of interest (EoI), floated by Projects & Development India Limited (PDIL) on behalf of the joint venture, seeks responses from internationally renowned technology licensors with the requisite coal gasification technology, willing to provide it for commercial production of SNG,” the official told PTI.
The document states: “The proposed joint venture between GAIL and CIL intends to set up a synthetic natural gas plant of 80,000 NM3/h at Eastern Coalfields Ltd in Bardhaman, West Bengal, using surface coal gasification route.”
On August 5, Coal India signed a joint venture agreement with GAIL (India) Limited for this coal to compressed natural gas plant. The last date for submission of expression of interest is October 15.
Earlier, in February 2024, Coal India had signed a similar agreement with Bharat Heavy Electricals Limited ( BHEEL (Belgium) ) for India’s first commercial scale ammonium nitrate plant using surface coal gasification technology.
A joint venture company, Bharat Coal Gasification and Chemicals Limited (BCGCL), has been formed to implement such a project in Odisha.
The Ministry of Coal aims to promote coal gasification with a target of 100 million tonnes of coal gasification by 2030.
The Union government will offer financial incentives of Rs 8,500 crore in three categories for coal/lignite gasification projects to support green fuel.
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