Coal India To Hold 51% Stake In Rs 11,700 Crore Coal-To-Chemical JV With BHEL

Coal India Limited on Wednesday said it will hold a 51% stake in the joint venture with Bharat Heavy Electricals Limited for the coal-to-chemicals project in Odisha.

"To form a JV company to undertake coal-to-chemicals business by initially setting up a Coal to 2000 tons per day Ammonium Nitrate Plant using BHEL’s in-house developed Pressurized Fluidized Bed Gasification technology," the company informed the bourses.

"Equity shareholding shall be 51% with CIL and 49% with BHEL," the miner said.

The CIL project involves its subsidiary Mahanadi Coalfields Limited in Jharsuguda district of Odisha at an estimated project cost of Rs 11,782 crore considering a debt-equity ratio of up to 70:30, the government said earlier.

The venture will kick off with the construction of a state-of-the-art Coal to Ammonium Nitrate Plant, leveraging BHEL’s Pressurized Fluidized Bed Gasification technology.

CIL, in a pivotal role, pledges to guarantee the off-take of a minimum of 75% of the production.

The company also stated that the JVC for the development of coal to Syngas Island/gasification plant on a lump sum turnkey basis harnessing BHEL's esteemed PFBG technology, following the meticulous scrutiny and finalization after a Detailed Feasibility Report.

Meanwhile, CIL had signed an MoU with GAIL for setting up of Coal-to-Synthetic Natural Gas project at Sonepur Bazari area of Eastern Coalfields Limited in Burdwan district at an estimated project cost of Rs 13,052 crore.