Coal India incorporates subsidiary to set up coal-to-synthetic natural gas biz

State-owned CIL on Tuesday announced the incorporation of subsidiary Coal Gas India Ltd to set up coal-to-synthetic natural gas (SNG) business. The company will utilise the end product, SNG, or any other product manufactured from Syn Gas, following studies and due diligence.

The company will carry on in India or in any part of the world all kinds of business relating to manufacturing of SNG, all types of organic and inorganic chemical compounds and products of any nature.

This includes setting up necessary plants, captive coal mining, coal beneficiation, and import of coal equipment and infrastructure facilities, Coal India Ltd (CIL) said in a regulatory filing.


Last year, a joint venture agreement was signed between Coal India Ltd and GAIL to set up the Coal to Synthetic Natural Gas business.

The coal ministry had last year conveyed the approval of DIPAM and NITI Aayog for the formation of the CIL-GAIL joint venture.

Coal India accounts for over 80 per cent of domestic coal output.