Gas major GAIL (India) Ltd has announced the incorporation of a new joint venture company with Coal India Ltd (CIL) to establish a Coal-to-Synthetic Natural Gas (SNG) project under the name Coal Gas India Limited. The new entity was officially incorporated on March 25, 2025.
According to the company’s regulatory filing, the authorised share capital of the new JV stands at ₹11 crore, with an initial paid-up capital of ₹1 lakh. Coal India holds a majority 51% stake, contributing ₹51,000, while GAIL holds the remaining 49%, investing ₹49,000.
The key objective of the joint venture is to set up infrastructure for producing synthetic natural gas from coal and utilise the output for various industrial and energy needs. This includes manufacturing organic and inorganic compounds, establishing coal processing plants, coal mining operations, and related infrastructure in India or abroad.
The project has received all necessary clearances, including approvals from the Ministry of Coal, DIPAM, and NITI Aayog, according to a letter dated February 19, 2024.
GAIL’s investment in the venture will be made through cash consideration, with the shares priced at ₹10 each.
The formation of this JV marks a strategic step in India’s energy transition plan, with a focus on alternate cleaner fuels such as synthetic gas derived from coal. The new company, Coal Gas India Ltd, will operate entirely in India.
