Gail and Coal India Limited (CIL) have issued an Expression of Interest (EoI) to shortlist licensors for coal gasification technology for a proposed synthetic natural gas (SNG) plant in West Bengal. The project, estimated to cost ?13,052 crore with a 70:30 debt-equity ratio, has received Cabinet approval. Coal for the plant will be sourced from CIL's subsidiary, Eastern Coalfields Ltd.

The joint venture will see Coal India holding a 51% stake and Gail holding 49%. The EoI, issued by Projects & Development India Limited (PDIL), invites responses from internationally recognized technology licensors capable of providing coal gasification technology for commercial SNG production.

The proposed plant aims to produce 80,000 NM3/hr of synthetic natural gas using surface coal gasification. The deadline for EoI submissions is October 15.

Earlier, Coal India had signed a similar agreement with Bharat Heavy Electricals Limited (BHEL) for India's first commercial-scale ammonium nitrate plant using surface coal gasification technology. This initiative falls under the Ministry of Coal's target to promote 100 million tonnes of coal gasification by 2030, supported by financial incentives of ?8,500 crore for coal and lignite gasification projects.