Coal India Ltd (CIL), a Maharatna public sector company, has officially incorporated Coal Gas India Ltd., a joint venture (JV) with GAIL (India) Ltd. This move marks Coal India’s expansion into the synthetic natural gas (SNG) sector, aligning with its diversification strategy.
On Tuesday, March 25, GAIL (India) and Coal India announced the incorporation of a joint venture (JV) with the objective of establishing a coal-to-synthetic natural gas (SNG) project in the eastern coalfield. This follows the JV agreement announced in August 2024. Coal India has an authorised share capital of ₹11 Crore, with an initial paid-up capital of ₹1 lakh in the company.
Coal India holds a 51% stake in the subsidiary, contributing ₹51,000, while GAIL owns 49% with an investment of ₹49,000. Coal India possesses 5,100 equity shares of the company, each with a par value of ₹10. Similarly, GAIL holds 4,900 equity shares, also with a par value of ₹10.
Coal India secured approval from the Ministry of Coal, DIPAM, and NITI Aayog on February 19, 2025, for the creation of this joint venture.
Coal Gas India Ltd. is set to develop a coal-to-SNG business, with plans to manufacture SNG and other chemical compounds after thorough market research. The company will establish necessary plants, engage in captive coal mining, and import coal equipment and infrastructure.
Additionally, the JV aims to augment coal processing facilities, including coal beneficiation and associated infrastructure. These initiatives are expected to support Coal India’s long-term growth and contribute to energy sector advancements.
As of March 26, 2025, at 9:38 AM, Coal India share price is trading at ₹399.95 per share, reflecting a surge of 0.41% from the previous day’s closing price. Over the past month, the stock has registered a profit of 9.92%.
Coal India’s entry into the SNG segment through this joint venture marks a significant strategic diversification. With strong backing and planned investments, Coal Gas India Ltd. is poised to play a crucial role in India’s transition towards alternative energy sources.
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Published on: Mar 26, 2025, 1:54 PM IST
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