Cabinet Committee on Economic Affairs Approves Coal India’s Strategic Investments in Gasification Projects

New Delhi:  The Cabinet Committee on Economic Affairs (CCEA) under the leadership of Prime Minister Shri Narendra Modi has granted approval for strategic equity investments by Coal India Limited (CIL) in two groundbreaking projects—Coal-to-Synthetic Natural Gas (SNG) and Coal-to-Ammonium Nitrate. These ventures are poised to contribute significantly to India’s energy goals and promote self-reliance.

Key Highlights:

1. Equity Investment in Coal-to-SNG Project:
   • CIL will invest an equity capital of Rs.1,997.08 Crore with a 70:30 Debt-Equity Ratio in a Joint Venture (JV) with GAIL.
   • The estimated project cost is Rs.13,052.81 Crore for setting up the Coal-to-SNG Project at Sonepur Bazari Area of Eastern Coalfields Limited (ECL) in West Bengal.
   • The venture aligns with India’s target of achieving 100 MT coal gasification by 2030, fostering energy independence.
2. Equity Investment in Coal-to-Ammonium Nitrate Project:
   • CIL will invest an equity capital of Rs.1,802.56 Crore with a 70:30 Debt-Equity Ratio in a JV with BHEL.
   • The estimated project cost is Rs.11,782.05 Crore for establishing the Coal-to-Ammonium Nitrate Project at Lakhanpur Area of Mahanadi Coalfields Limited (MCL) in Odisha.
   • The project emphasizes the dual objectives of self-reliance and energy independence.
3. Approval for Equity Investment Beyond 30%:
   • The CCEA has granted approval for CIL to exceed its 30% net-worth limit for equity investment in the aforementioned JVs with GAIL and BHEL.
4. Strategic Coal Gasification Initiatives:
   • CIL, in collaboration with GAIL, aims to establish a Coal-to-SNG Project in West Bengal, furthering the commitment to coal gasification and reducing dependence on conventional fuels.
   • The Coal-to-Ammonium Nitrate Project in Odisha, undertaken with BHEL, highlights CIL’s dedication to diversifying applications of coal-based products.
5. Targeted Goals by 2030:
   • These strategic investments are in line with CIL’s ambitious target of achieving 100 MT coal gasification by 2030, contributing significantly to India’s energy landscape.

The approvals underscore the government’s commitment to promoting cleaner energy alternatives and achieving energy security through innovative coal-based projects. These initiatives are expected to play a crucial role in realizing India’s vision of self-sufficiency and sustainable energy solutions.