Govt greenlights coal diversification: SNG & fertilizer projects get CIL boost

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Shri Narendra Modi today approved proposal for equity investment by (i) CIL for setting up of Coal-to-SNG (Synthetic Natural Gas) Project at ECL command area through a JV of CIL & GAIL; and (ii) for setting up of Coal-to-Ammonium Nitrate Project at MCL command area through a JV of CIL & BHEL.

The CCEA has approved the proposal of equity investments by CIL as follows:

Equity Capital of Rs.1,997.08 Crore (±25%) by CIL considering a Debt-Equity Ratio of 70:30, and 51% Equity Investment in JV Company with an estimated Project Capex of Rs.13,052.81 Crore (accuracy of ±25%) for the proposed Coal-to-Synthetic Natural Gas (SNG) at Sonepur Bazari Area of Eastern Coalfields Limited (ECL) in Burdwan district of West Bengal through JV of CIL and GAIL.

Equity Capital of Rs.1,802.56 Crore (± 25%) by CIL considering a Debt-Equity Ratio of 70:30, and 51% Equity Investment in JV Company with an estimated Project Capex of Rs.11,782.05 Crore (accuracy of ±25%) for the proposed Coal-to-Ammonium Nitrate (AN) at Lakhanpur Area of Mahanadi Coalfields Limited (MCL) in Jharsuguda district of Odisha through JV of CIL and BHEL.

Join PSU Connect on WhatsApp now for quick updates! Click here

Read Also : 1337 railway stations to develop under Amrit Bharat Station Scheme in country: Govt

Approval for Equity Investment by CIL beyond 30% of its Net-worth in the JV of CIL-GAIL as at point (a) above, and in JV of CIL-BHEL as at point (b) above.

Coal India Limited (CIL) will set up following two Coal Gasification Plants with a view to achieve the target of 100 MT coal gasification by the year 2030 and to fulfil India’s dual objectives of self-reliance and energy independence –

Read Also : Oil, Gas CPSEs set to exceed IEBR capex for fifth-straight year in FY25

CIL has signed MOUs with GAIL for setting up of Coal-to-SNG Project at Sonepur Bazari Area of Eastern Coalfields Limited (ECL) in Burdwan district of West Bengal through JV of CIL & GAIL at an estimated project cost of Rs.13,052.81 Crore (±25%) considering a debt:equity ratio of up to 70:30. 

CIL has signed MOUs with BHEL for setting up of Coal-to-Ammonium Nitrate Project at Lakhanpur Area of Mahanadi Coalfields Limited (MCL) in Jharsuguda district of Odisha a JV of CIL & BHEL, at an estimated project cost of Rs.11,782.05 Crore (±25%) considering a debt:equity ratio of up to 70:30.

Read Also : Satish Jha takes charge as CMD at Eastern Coalfields Ltd