Archive · 30 Aug 2026
West Bengal Coal-to-Gas Project Begins Global Technology Selection
Coal Gas India Ltd is planning a plant in West Bengal that will turn coal into synthetic natural gas.
The process is called surface coal gasification.
The company is comparing technology from firms in China, Germany, and the United States.
Officials found the proposed site suitable after a field survey.
The plant is planned near Durgapur in the Sonepur-Bazari mine area.
It could make 633.66 million cubic metres of gas every year.
The government has offered Rs 1,350 crore to help reduce the project's financial risk.
Building and starting the plant could take five years after the final bid is chosen.
The gas is intended for chemical industries such as fertilizer production, while officials say existing coal supplies for power plants will not be affected.
Coal Gas India Ltd has begun seeking surface coal gasification technology from licensors in China, Germany, and the United States.
The proposed project will be located near Durgapur in the Eastern Coalfields area, with 190 acres allocated for the plant.
The facility is expected to produce 633.66 million cubic metres of synthetic natural gas annually over a 25-year operational life.
The central government has approved Rs 1,350 crore in Viability Gap Funding for the project.
Construction and commissioning are expected to take five years after the technology bid is finalized, with a public hearing scheduled for September 21.
- Who
- Coal Gas India Ltd, a joint venture between Coal India Ltd and GAIL, is developing the project.
- What
- A surface coal gasification plant will produce synthetic natural gas for chemical industries.
- When
- Technology selection has begun; construction and commissioning are expected to take five years after bid finalisation, and the public hearing is scheduled for September 21.
- Where
- The project is planned in the Sonepur-Bazari mine area near Durgapur, West Bengal, covering areas between Pandaveswar and Jamuria in the Raniganj Coalfields.
- Why
- The project aims to promote domestic synthetic gas production and provide cleaner fuel options for industries amid concerns about air pollution and carbon emissions.
Project proponents
Environmental and implementation concerns
Cleaner fuel and industrial use
Project proponents
Supporters say coal gasification can produce synthetic gas for fuels, fertilizers, and chemicals while supporting domestic gas production.
Environmental and implementation concerns
The project is being pursued amid continuing concerns about air pollution and carbon emissions linked to coal-based energy production.
Economic and operational feasibility
Project proponents
Government Viability Gap Funding is intended to reduce the project's initial capital risk, and officials say the site is suitable and existing power-sector coal supplies will not be affected.
Environmental and implementation concerns
Officials acknowledge the project involves substantial costs, and final viability will only be determined after the L-1 bidder is selected.
- Project company
- Coal Gas India Ltd, a Rs 13,052-crore joint venture between Coal India Ltd and GAIL
- Technology
- Surface coal gasification
- Proposed output
- 633.66 million cubic metres of synthetic gas annually
- Operational life
- 25 years
- Government funding
- Rs 1,350 crore in Viability Gap Funding
- Land allocated
- 190 acres by ECL
- Annual coal requirement
- 1.93 million tonnes from the Sonepur-Bazari mine
- Expected timeline
- Five years for construction and commissioning after bid finalisation