CIL to ink pacts with BHEL, IOCL and GAIL to set up four coal gasification projects

September 23, 2022 Stu Turley International News

“Coal India Limited (CIL), under the aegis of Ministry of Coal, will be inking three major Memorandum of Undertaking (MoU) on September 27,” the coal ministry said in a statement.

New Delhi: State-ownedCILwill sign agreements with three public sector enterprises —Bharat Heavy Electricals Ltd(BHEL),Indian Oil Corporation Ltd(IOCL) and GAIL (India)– in order to set up four surface gasification projects. Through gasification process,coalis converted into syngas — a fuel gas — which can be used in downstream production of value added chemicals.

The government aims to achieve 100 million tonnes of coal gasification in the next eight years in order to reduce the import of crude oil which is otherwise used to produce syngas.

“Coal India Limited (CIL), under the aegis of Ministry of Coal, will be inking three major Memorandum of Undertaking (MoU) on September 27,” the coal ministry said in a statement.

The proposed projects would reduce forex outgo and create around 23,000 jobs, it said.

The government had earlier said that the target to gasify 100 million tonnes of coal by 2030 will entail an investment of over Rs 4 lakh crore.

This 100 MT coal gasification will happen in three phases, the government had said.

In the first phase from 2020-2024, 4 million tonnes (MT) of coal will be gasified and around Rs 20,000 crore will be invested for the same.

In the second phase from 2020-2026, 6 MT of coal will be gasified which will involve an investment of Rs 30,000 crore.

In the third phase from 2022-2030, 90 MT of coal will be gasified and Rs 3.6 lakh crore will be invested for the same.

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About Stu Turley 3367 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.

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