Coal India & GAIL Launch ‘Coal Gas India’ for SNG Business Expansion

27 Mar 2025 , 12:55 PM

State-owned CIL has set up Coal Gas India Ltd as its distributed and incorporated the subsidiary joint venture with GAIL (India) Ltd. The subsidiary’s formation is part of Coal India’s diversification plans as it enters the synthetic natural gas (SNG) business.

On 25 March 2025 the Ministry of Corporate Affairs did issue incorporation certificate (CIN U19201WB2025GOI277773). This follows the joint venture (JV) agreement signed between CIL and GAIL in August 2024.

Coal Gas India Ltd. has an authorized share capital of ₹11 lakh and an initial paid-up capital of ₹1 lakh. Coal India has a 51% stake in the new entity with an investment of ₹51,000 and GAIL owns the remaining 49% with an investment of ₹49,000. Coal Gas India Ltd is focusing on coal-to-SNG business, using the synthetic gas and other by-products, after extensive market research.

The subsidiary will engage in the production of synthetic natural gas (SNG) and organic/inorganic chemical products, including:

• Setting up coal gasification plants
• Captive coal mining
• Coal beneficiation
• Importing coal-related equipment
• Developing infrastructure for coal processing

On February 19, 2025, the joint venture was approved by the Ministry of Coal, DIPAM and NITI Aayog. This venture is likely to help in India’s energy transition by enabling the cleaner coal-based energy.

Coal India will also come out with a provisional production update for the financial year by the end of this week. The company had set a target for production of 838 million tonnes (MT) for the fiscal and thus needs in excess of 100 MT of output in the last leg to reach this figure.