Coal India Ltd to ink MoU with Three PSUs for Coal to Chemical Products

Tags: National Economics/Business National News

Coal India Limited (CIL) will sign MoU with three major public sector undertakings – Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL) and GAIL (India) on 27 September for setting up four Surface Coal Gasification (SCG) projects.


  • These public sector undertakings will join hands to set up coal-to-chemical projects through the Surface Coal Gasification (SCG) route.
  • Through the SCG route, coal is converted into syngas which can then be processed for downstream production of value-added chemicals. They are produced through imported natural gas or crude oil currently.

  • The envisaged end products are di-methyl ether, synthetic natural gas and ammonium nitrate.

  • The proposed projects will reduce foreign exchange expenditure and create more than 23,000 direct and indirect employment opportunities.

  • A target of achieving 100 million tonnes of coal gasification by 2030 has been set by the Ministry of Coal.

What is Syngas ?

  • It is an abbreviation for synthesis gas, which is a mixture of carbon monoxide, carbon dioxide and hydrogen.

  • This is produced by gasification of a carbon containing fuel to a gaseous product that has some heating value. 

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