BPCL and Coal India Announce Joint Venture for Maharashtra Coal Gasification Project

New Delhi: Bharat Petroleum Corporation Limited (BPCL) has approved the formation of a joint venture company with Coal India Limited (CIL) for setting up a Coal Gasification Project at Western Coalfields in Maharashtra, subject to receipt of statutory and regulatory approvals.

The decision was taken by BPCL’s Board of Directors at its meeting held on December 18, 2025, the company informed stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Under the proposed joint venture structure, Coal India Limited will hold a 51% stake, while BPCL will hold 49%. The project will be implemented as a domestic venture, focusing on the construction, operation and maintenance of coal gasification facilities.

The definitive agreements, total project cost, investment commitments and share subscription details will be finalised after completion of the Detailed Feasibility Study (DFS) and Detailed Project Report (DPR). BPCL stated that these details will be disclosed to stock exchanges once finalised.

The collaboration aims to leverage Coal India’s leadership in domestic coal production and BPCL’s expertise in refining and gas marketing. The proposed project is expected to produce Synthetic Natural Gas (SNG), offering an indigenous alternative to imported natural gas.

BPCL said the initiative will support clean coal technologies, strengthen India’s energy security, reduce import dependence, and contribute to sustainable industrial growth. The joint venture does not involve any related party transaction, and details regarding board representation will be decided in due course.