Coal India, a government-owned company, announced on Tuesday that it has created a new subsidiary called Bharat Coal Gasification and Chemicals Ltd (BCGCL). This new company will focus on converting coal into chemicals. Coal India owns 51% of BCGCL, while Bharat Heavy Electricals Ltd (BHEL) owns the remaining 49%.
In February, Coal India and BHEL signed a joint venture agreement to start this coal-to-chemicals business. They received approvals from NITI Aayog and the Department of Investment and Public Asset Management (DIPAM) to form this new joint venture.
The new company, BCGCL, will produce ammonia and nitric acid as intermediate products and ammonium nitrate as the final product.
Additionally, Coal India signed an agreement with GAIL to set up a coal-to-synthetic natural gas project in the Sonepur Bazari area of Eastern Coalfields Limited (ECL) in Burdwan district. This project is expected to cost around Rs 13,052 crore.
Coal India produces over 80% of the country’s coal.
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