NTPC Plans ₹10,000 Crore Coal-to-SNG Project in Chhattisgarh

NTPC is planning a large-scale coal-to-synthetic natural gas (SNG) project in Chhattisgarh with an estimated capital expenditure of around ₹10,000 crore, marking a key step in cleaner utilisation of domestic coal resources, as per PTI reports. 

Project Overview and Capacity 

The proposed facility will be set up at Talaipalli in Chhattisgarh and will utilise high-ash Indian coal sourced from NTPC’s captive mines.  

The plant will have a capacity of 5 lakh tonnes per annum of SNG, spread over nearly 150 acres, and will consume around 25 lakh tonnes of coal annually. NTPC is targeting SNG production at an estimated cost of about $12 per million British thermal unit. 

NTPC continues to expand beyond conventional power generation through strategic projects such as its proposed coal-to-synthetic natural gas facility in Chhattisgarh.  

The initiative aligns with the company’s focus on cleaner utilisation of domestic coal, technology-driven energy solutions and long-term energy security, while also opening new revenue avenues through value-added fuel and chemical production. 

Technology, Timeline and Strategic Rationale 

NTPC is currently in advanced discussions for international technology tie-ups covering processes such as coal beneficiation, gasification, water gas shift and methanation.  

The technology framework is expected to be finalised by the last quarter of FY26, following which preparations for land, power and water will begin. The initiative is being led by NETRA, NTPC’s R&D arm, under its vision of “greening the coal” and advancing carbon capture and utilisation.  

The company sees coal gasification as a strategic tool to reduce import dependence, lower emissions, and unlock commercial opportunities, as syngas can be used to produce SNG, methanol, ethanol, ammonia for fertilisers, and petrochemicals. 

Read More: NTPC Green Energy Q2 Profit Doubles to ₹88 Crore as Revenue Jumps 22%! 

NTPC Share Price Performance  

As of January 12, 2026, at 11:03 AM, NTPC share price is trading at ₹339.30 per share, reflecting a surge of 0.98% from the previous closing price.  

Conclusion  

The Talaipalli coal-to-SNG project highlights NTPC’s strategy to sustainably utilise domestic coal while reducing reliance on imports. By integrating advanced gasification technologies under its ‘greening the coal’ vision, the project also opens avenues for producing cleaner fuels, fertilisers and petrochemical feedstocks. 

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