CIL Launches Subsidiary for Coal-to-SNG Business Transformation

State-owned Coal India Ltd has announced the creation of Coal Gas India Ltd as its subsidiary for developing a coal-to-Synthetic Natural Gas (SNG) business. This venture, in partnership with GAIL, aims to utilize SNG produced from Syn Gas and will involve setting up necessary infrastructure and mining facilities.

Coal India Limited (CIL), a state-owned enterprise, announced the formation of its latest subsidiary, Coal Gas India Ltd, on Tuesday. This strategic initiative marks a significant step towards diversifying its portfolio by developing a coal-to-Synthetic Natural Gas (SNG) business.

The subsidiary intends to leverage the final product, SNG, which results from Syn Gas processes, after comprehensive studies and due diligence. The company's expansive plan encompasses the manufacturing of various organic and inorganic chemical compounds, necessitating the establishment of pertinent infrastructure and facilities.

A landmark joint venture agreement was previously signed with GAIL to spearhead this new endeavor, which received approval from both the Department of Investment and Public Asset Management (DIPAM) and NITI Aayog. CIL already accounts for the lion's share of over 80% in domestic coal production.

(With inputs from agencies.)