Synopsis
On March 25, GAIL and Coal India revealed a joint venture to produce synthetic natural gas. This partnership aims to enhance coal processing infrastructure, aligning with evolving global energy policies.Key Takeaways
- Formation of Coal Gas India Limited.
- Coal India holds a 51% stake, GAIL 49%.
- Aim to enhance infrastructure for synthetic gas production.
- Joint venture aligns with India's energy security goals.
- Interim dividend declared for shareholders.
New Delhi, March 25 (NationPress) GAIL (India) Limited and Coal India Limited unveiled their collaboration on Tuesday, establishing a joint venture named Coal Gas India Limited aimed at increasing the production of synthetic natural gas.
The newly formed company boasts an authorised share capital of Rs 11 crore, as indicated in a notification to the stock exchanges.
In this venture, Coal India will maintain a 51 percent ownership stake, while GAIL will control the remaining 49 percent.
This partnership's primary goal is to create and enhance the infrastructure needed for converting coal into synthetic natural gas.
This encompasses captive coal mining, coal beneficiation, coal imports, equipment procurement, and establishing related facilities.
The announcement comes at a time of shifting global coal policies. Recently, US President Donald Trump reaffirmed his support for coal-based energy, indicating that his administration would advocate for the use of clean coal.
Nonetheless, environmental regulations in the US have prompted plans to close 120 coal-fired power plants over the next five years, according to reports.
Additionally, CIL and GAIL signed a joint venture agreement last year to construct a Coal to Synthetic Natural Gas (SNG) facility in West Bengal.
The Ministry of Coal announced this partnership in August, deeming it a crucial advancement towards India’s energy security and sustainability objectives.
The new facility is designated to be built in the Raniganj area of Eastern Coalfields Limited.
In Q2, CIL reported a net profit of Rs 8,491.22 crore, reflecting a 17.5 percent decline from the Rs 10,291.71 crore profit noted during the same quarter last year.
The company also rewarded its investors by declaring an interim dividend of Rs 5.6 per equity share for the fiscal year 2024-25.
This dividend was ratified by the Audit Committee of CIL and will be disbursed to shareholders who possess equity shares by the record date, which is set for January 31, 2025.
