Business News | Cabinet Committee on Economic Affairs Greenlights Coal-to-energy Projects
Get latest articles and stories on Business at LatestLY. According to a Cabinet press release, the first project involves Coal India Limited's (CIL) collaboration with GAIL for the establishment of a Coal-to-Synthetic Natural Gas (SNG) Plant at the Sonepur Bazari Area in West Bengal.
New Delhi [India], January 24 (ANI): In a move towards advancing India's energy landscape, the Cabinet Committee on Economic Affairs (CCEA), under the leadership of Prime Minister Narendra Modi, has given the nod to equity investments for two transformative projects.
According to a Cabinet press release, the first project involves Coal India Limited's (CIL) collaboration with GAIL for the establishment of a Coal-to-Synthetic Natural Gas (SNG) Plant at the Sonepur Bazari Area in West Bengal.
The second project entails a joint venture between CIL and BHEL for the creation of a Coal-to-Ammonium Nitrate Plant in the Lakhanpur Area in Odisha.
For the Coal-to-SNG Project, CIL is set to invest Rs 1,997.08 Crore with a debt-equity ratio of 70:30. The estimated project cost stands at Rs 13,052.81 Crore.
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Similarly, for the Coal-to-Ammonium Nitrate Project, CIL will invest Rs 1,802.56 Crore with a debt-equity ratio of 70:30, and the projected cost is Rs 11,782.05 Crore. The equity investment by CIL in both projects will be 51 per cent, ensuring a significant stake in the joint ventures.
These ventures are part of CIL's commitment to achieving 100 MT coal gasification by 2030, aligning with India's objectives of self-reliance and energy independence.
The projects are strategically located in the command areas of Eastern Coalfields Limited (ECL) and Mahanadi Coalfields Limited (MCL), contributing to regional development.
Manish Desai, Principal Director General of Press Information Bureau, emphasized the significance of the Cabinet's decision through a post on X, "#Cabinet approves equity investment by (i) CIL for setting up of Coal-to-SNG Project at ECL command area through a JV of CIL & GAIL (ii) for setting up of Coal-to-Ammonium Nitrate Project at MCL command area through a JV of CIL & BHEL #cabinetdecisions". (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)