CIL to hold 51% stake in Rs 11,700 crore coal-to-chemical JV with BHEL

Coal India Limited (CIL) on Wednesday said it will hold a 51 per cent stake in the joint venture with Bharat Heavy Electricals Limited (BHEL) 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 (TPD) Ammonium Nitrate Plant using BHEL's in-house developed PFBG (Pressurized Fluidized Bed Gasification) technology," the company informed the bourses.

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

The CIL project involves its subsidiary Mahanadi Coalfields Limited (MCL) 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 (PFBG) technology.

CIL, in a pivotal role, pledges to guarantee the off-take of a minimum of 75 per cent 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 (DFR).

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 (ECL) in Burdwan district at an estimated project cost of Rs 13,052 crore.