Coal India- Gail JV sponsers EoI of Rs 13,000 cr for coal gasification project

An Expression of Interest (EOI) for shortlisting licensors of coal gasification technology for a proposed coal-based synthetic natural gas (SNG) plant in West Bengal was floated by the Gail and Coal India Limited (CIL) joint venture responsible for promoting the project, an official said.

The Cabinet approved the project, valued at an estimated amount of Rs 13,052 crore, considering a debt-equity ratio of 70:30. Coal for the plant will be supplied by CIL's subsidiary, Eastern Coalfields Ltd. Coal India will hold a 51 percent stake in the JV. At the same time, Gail will have a 49 percent share.

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"The EoI, floated by Projects & Development India Limited (PDIL) on behalf of the JV, seeks responses from internationally reputed technology licensors with the requisite coal gasification technology, willing to provide it for the commercial production of SNG," the official said.

The document states, "The proposed joint venture of Gail & CIL plans to establish an 80,000 NM3/hr synthetic natural gas plant at Eastern Coalfields Ltd in Bardhaman, West Bengal, using the surface coal gasification method."

On August 5, Coal India signed a joint venture agreement with Gail (India) Limited for this coal-to-SNG plant. The last date for the EoI submission is October 15.

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