CCEA Approves Coal India’s Strategic Investments In Coal Gasification Projects
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, granted approval today for two significant equity investments by Coal India (CIL).
The approved proposals involve setting up a Coal-to-Synthetic Natural Gas (SNG) Project in the Eastern Coalfields (ECL) command area through a joint venture (JV) of CIL and GAIL, as well as establishing a Coal-to-Ammonium Nitrate Project in the Mahanadi Coalfields (MCL) command area through a JV of CIL and BHEL.
The Cabinet Committee on Economic Affairs (CCEA) has given its nod for two significant equity investments by Coal India (CIL). The first involves the Coal-to-Synthetic Natural Gas (SNG) Project at the Eastern Coalfields Limited (ECL) command area.
CIL will invest Rs. 1,997.08 Crore (±25 per cent), constituting 51 per cent equity in the joint venture (JV) with an estimated project capital expenditure of Rs. 13,052.81 Crore (±25 per cent). Located in the Sonepur Bazari Area of ECL in Burdwan district, West Bengal, this venture will be executed through a JV of CIL and GAIL.
Similarly, the second project, the Coal-to-Ammonium Nitrate Project at the Mahanadi Coalfields Limited (MCL) command area, entails an equity capital of Rs. 1,802.56 Crore (±25 per cent) by CIL, with a 51 per cent equity investment in the JV company and an estimated project capital expenditure of Rs. 11,782.05 Crore (±25 per cent).
This project is situated in the Lakhanpur Area of MCL in Jharsuguda district, Odisha, and will be executed through a JV of CIL and BHEL.
Additionally, the CCEA has sanctioned equity investments by CIL beyond 30 per cent of its net worth in the mentioned JVs with GAIL and BHEL.
These strategic investments align with CIL's commitment to achieving 100 MT coal gasification by 2030, contributing to India's self-reliance and energy independence goals.
Coal India aims to establish these Coal Gasification Plants as part of its commitment to achieving the target of 100 MT coal gasification by the year 2030. The projects align with India's dual objectives of self-reliance and energy independence.
CIL has entered into Memorandums of Understanding (MOUs) with GAIL for the Coal-to-SNG Project and with BHEL for the Coal-to-Ammonium Nitrate Project. Both projects are crucial steps toward India's sustainable and strategic energy future. The estimated project costs and debt:equity ratios emphasise the financial prudence of these ventures.
These initiatives underscore CIL's dedication to advancing sustainable energy practices and contributing to India's long-term energy security goals.
