Coal India and BHEL incorporates JV for coal-to-chemical business

State-owned Coal India has announced the incorporation of a subsidiary firm, Bharat Coal Gasification and Chemicals Ltd (BCGCL) for undertaking a coal-to-chemicals business, as per exchange filing.

Earlier in February, Coal India has signed a joint venture agreement with Bharat Heavy Electricals Ltd (BHEL) for undertaking a coal-to-chemicals business.

In terms of shareholdings review, Coal India (CIL) holds a majority 51 percent stake in the new entity while the remaining 49 per cent is owned by BHEL.

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The joint incorporation has received the clearance of NITI Aayog and the Department of Investment and Public Asset Management (DIPAM) for the formation of the joint venture company between BHEL and CIL, the filing said.

The Bharat Coal Gasification and Chemicals Limited has been incorporated as a Private company as a subsidiary of Coal India and BHEL JV. The authorized capital is Rs 11 crores and Paid-up capital is Rs 1 Lakh.

The objective is to engage into the business of coal gasification to produce syn-gas, Ammonia, and Nitric Acid as intermediate products and Ammonium Nitrate as end product.

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