GAIL, Coal India Form JV To Establish Synthetic Natural Gas Plant In West Bengal

GAIL (India) Ltd. and Coal India Ltd. have set up a joint venture pact for setting up a coal-to-synthetic natural gas plant at Eastern Coalfield Ltd., in West Bengal's Bardhaman. In the JV, Coal India will have 51% shareholding and GAIL will have 49%, according to an exchange filing on Monday.

The joint venture company shall be incorporated as a 'Private Limited' company. The initial paid-up share capital of Rs 1 lakh and the authorised share capital of the JVC shall be Rs 11 crore, comprising 1,10,00,000 equity shares at Rs 10 each, as per GAIL's exchange filing.

The registered office of the JVC shall be situated in West Bengal. CIL and GAIL each shall have the right to nominate three executives as directors of JVC.

Shares of GAIL (India) closed 5.43% lower at Rs 224.15 apiece, as compared to a 2.68% decline in the NSE Nifty 50.