Coal India Limited (CIL) has officially announced the incorporation of a new subsidiary, Coal Gas India Limited, in collaboration with GAIL (India) Limited, to spearhead the Coal to Synthetic Natural Gas (SNG) initiative. The Ministry of Corporate Affairs granted the Certificate of Incorporation to Coal Gas India Limited on March 25, 2025, as per a regulatory filing made by the company.
The joint venture aims to set up infrastructure for producing Synthetic Natural Gas from coal. CIL holds a 51% stake in the newly formed entity, while GAIL holds the remaining 49%. The initial paid-up capital for the venture is Rs 1 lakh, and the authorized share capital stands at Rs 11 crore.
Key Objectives of the Subsidiary:
- Manufacture and market Synthetic Natural Gas (SNG) and associated by-products.
- Develop infrastructure for coal processing, including captive coal mining, coal beneficiation, and import of equipment.
- Create organic and inorganic chemical compounds through coal gasification.
This move aligns with India’s broader energy strategy to diversify fuel sources and transition towards cleaner alternatives while leveraging domestic coal reserves.
Regulatory Approvals:
The joint venture received necessary approvals from the Ministry of Coal, DIPAM, and NITI Aayog through a letter dated February 19, 2024.
This strategic collaboration is expected to bolster India’s gas-based economy and support the government’s energy transition goals.
