State-owned Coal India on Tuesday announced the incorporation of a subsidiary firm, Bharat Coal Gasification and Chemicals Ltd. for undertaking a coal-to-chemicals business. Coal India holds a majority 51% stake in the new entity while the remaining 49% is owned by BHEL, the coal behemoth informed the BSE.
Coal India in February signed a joint venture agreement with Bharat Heavy Electricals Ltd. for undertaking a coal-to-chemicals business.
Clearance of NITI Aayog and the Department of Investment and Public Asset Management has been received for the formation of the joint venture company between BHEL and CIL, the filing said.
"Bharat Coal Gasification & Chemicals Ltd has been incorporated...for coal to chemicals business to produce ammonia and nitric acid as intermediate products and ammonium nitrate as end product," the filing said.
Meanwhile, CIL had signed a Memorandum of Understanding with GAIL for setting up of coal-to-synthetic natural gas project at Sonepur Bazari area of Eastern Coalfields Limited in Burdwan district at an estimated project cost of Rs 13,052 crore.
Coal India accounts for over 80% of domestic coal output.
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