In order to establish four surface gasification projects, the state-owned CIL would enter into agreements with three public sector companies: Bharat Heavy Electricals Ltd (BHEL), Indian Oil Corporation Ltd (IOCL), and GAIL (India).
Coal is transformed into syngas, a fuel gas that can be used in the downstream manufacturing of value-added chemicals, through the gasification process.
In order to decrease the import of crude oil, which is otherwise used to make syngas, the government wants to achieve 100 million tonnes of coal gasification over the next eight years.
“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.
