India’s energy sector is set for a major transformation with the formation of Coal Gas India Limited, a joint venture between GAIL (India) Limited and Coal India Limited. This collaboration aims to accelerate the production and utilisation of synthetic natural gas (SNG), strengthening the country’s energy security while promoting cleaner fuel alternatives. The initiative represents a significant move towards reducing reliance on traditional fossil fuels and enhancing the efficiency of coal-based energy production.The newly established entity, Coal Gas India Limited, has been launched with an authorised share capital of ₹11 crore, with Coal India holding a 51 per cent stake and GAIL owning the remaining 49 per cent.
This joint venture is expected to drive large-scale coal gasification projects, facilitating the conversion of coal into synthetic natural gas. The process is designed to produce cleaner energy by reducing carbon emissions and minimising the environmental impact of coal-based power generation. By adopting advanced technology, the venture aligns with India’s commitment to sustainability and the global push for energy transition.The formation of this joint venture comes at a time when energy policies worldwide are shifting towards sustainable alternatives. The Indian government has been actively promoting coal gasification to curb pollution and reduce dependency on imported natural gas. The Ministry of Coal has identified coal gasification as a priority area and has extended support for initiatives that utilise domestic coal resources in an environmentally friendly manner. This project will not only contribute to energy self-sufficiency but also generate employment opportunities across multiple sectors, including coal mining, gas processing, and infrastructure development.
One of the key initiatives under this collaboration includes the development of a Coal to Synthetic Natural Gas (SNG) plant in West Bengal’s Raniganj area. This project is expected to play a crucial role in India’s clean energy transition by providing a stable supply of synthetic gas, which can be used for industrial applications, power generation, and residential consumption. The integration of coal gasification with advanced carbon capture technologies will further enhance the environmental viability of the initiative, ensuring that emissions are kept to a minimum while maximising energy output.Beyond its immediate impact on the energy sector, the establishment of Coal Gas India Limited is also expected to drive economic growth. The availability of synthetic natural gas at a competitive price will benefit industries that depend on natural gas, such as fertilisers, chemicals, and power plants. Additionally, the shift towards cleaner fuel sources aligns with India’s long-term vision of achieving net-zero carbon emissions by 2070. With this joint venture, India takes a decisive step towards a more resilient and sustainable energy ecosystem, setting an example for other nations exploring similar coal-to-gas initiatives.
As the project progresses, the collaboration between GAIL and Coal India will focus on developing infrastructure, securing necessary regulatory approvals, and ensuring smooth implementation of coal gasification technologies. The success of this venture could pave the way for further investments in clean energy solutions, reinforcing India’s position as a global leader in sustainable energy innovation. With the formation of Coal Gas India Limited, the country is poised to witness a paradigm shift in its energy landscape, reducing carbon footprints while ensuring energy security for future generations.
Coal Gas India Limited Set to Transform Energy Sector