Coal India enters into Joint Venture with GAIL
The JV is supposed to create, establish, set up, necessary plants including captive coal mining, coal beneficiation, import of coal equipment and infrastructure facilities, including other associated facilities for processing of coal.
Maharatna, CPSE Coal India has announced the incorporation of "Coal Gas India Ltd.," a new subsidiary, formed as a joint venture with GAIL (India) Ltd. This strategically aligns with Coal India's move to expand into the synthetic natural gas (SNG) sector and aligns with the company's diversification plans.
The incorporation certificate for Coal Gas India Ltd., bearing CIN U19201WB2025GOI277773, was issued by the Ministry of Corporate Affairs on March 25, 2025. This follows the JV agreement signed between CIL and GAIL, which was announced in August last year, as per the filing.
In terms of shareholding, Coal Gas India Ltd. has an authorized share capital of Rs 11 lakh and an initial paid-up capital of Rs 1 lakh (Rupees One Lakh only).
Coal India will hold a 51% stake in the subsidiary, with an investment of Rs 51,000, while GAIL holds the remaining 49% with an investment of Rs 49,000.
The primary objective of Coal Gas India Ltd. is to establish a coal-to-synthetic natural gas (SNG) business. The company aims to utilize the end product, SNG, or any other product manufactured from Syn Gas, after thorough market study and due diligence.
The company intends to engage in manufacturing SNG and various organic and inorganic chemical compounds. This includes setting up necessary plants, captive coal mining, coal beneficiation, and import of coal equipment and infrastructure facilities.
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For the establishment of this JV, the state-owned Coal India received approval from the Ministry of Coal, along with DIPAM and NITI Aayog, on February 19, 2025.
The JV is supposed to create, establish, set up, necessary plants including captive coal mining, coal beneficiation, import of coal equipment and infrastructure facilities, including other associated facilities for processing of coal.
Shares of Coal India were closed 2 pc lower at Rs 397.90 and shares of Gail India were closed 2.50 pc low at Rs 177.50.
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