BPCL board approves JV with Coal India for coal gasification project in Maharashtra

Bharat Petroleum Corporation Ltd (BPCL) on Thursday, December 18, said its board has approved the formation of a joint venture with Coal India Ltd to set up a coal gasification project at Western Coalfields

in Maharashtra, subject to regulatory approvals.

Under the proposed arrangement, Coal India will hold a 51% stake in the joint venture, while BPCL will own the remaining 49%.

The JV will be responsible for the construction, operation, and maintenance of the coal gasification facility.

BPCL said the terms of the definitive agreements, including total project cost, investment commitments by the partners, and share capital details, will be finalised after the completion of a detailed feasibility study and preparation of the detailed project report (DPR).

According to the exchange filing, the proposed project aims to produce synthetic natural gas (SNG), which will serve as an indigenous alternative to imported natural gas.

BPCL said the collaboration will combine Coal India’s strength in domestic coal production with BPCL’s expertise in refining and gas marketing.

The initiative is expected to promote cleaner coal technologies, enhance India’s energy security, reduce import dependence, and support sustainable industrial growth. Details related to board representation and other governance matters will be decided once the definitive agreements are finalised.

BPCL shares ended lower on Thursday, December 18, by 1.32% at ₹363.50 on the NSE, while the Coal India stock ended marginally higher at ₹385.15.

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