BPCL, Coal India Form Joint Venture for Coal Gasification Project in Maharashtra

Bharat Petroleum Corporation Limited (BPCL) has approved the formation of a joint venture with Coal India Limited to develop a coal gasification project in Maharashtra.  

The partnership brings together Coal India’s coal production capabilities and BPCL’s experience in refining and gas marketing to create an indigenous energy solution aimed at supporting India’s long-term energy needs. 

Joint Venture Structure and Project Scope 

The proposed joint venture will be set up as a domestic entity, with Coal India Limited holding a 51% stake and BPCL owning the remaining 49%. The project will be located at Western Coalfields in Maharashtra and will focus on the construction, operation and maintenance of a coal gasification facility.  

The initiative is designed to produce synthetic natural gas, offering an alternative to conventional natural gas sources while promoting cleaner utilisation of coal resources. 

Investment Approach and Shareholding Details 

The issue price, class of shares and total authorised share capital of the joint venture will be determined at a later stage. The final investment amounts and capital subscription by both partners will be decided after completion of the detailed feasibility study and the detailed project report.  

The consideration for equity participation will be finalised at the time of signing definitive agreements or when the final investment decision is taken by the board. 

Strategic Rationale and Expected Outcomes 

The joint venture is expected to combine Coal India’s strength in domestic coal availability with BPCL’s downstream expertise to deliver synthetic natural gas for industrial and commercial use.  

The project aims to reduce dependence on imported natural gas, strengthen domestic energy security, promote cleaner coal-based technologies and contribute to sustainable industrial growth in India. 

Read More: Coal India, ONGC, BPCL Among 15 PSU Stocks With Dividend Yields Up To 7%! 

BPCL and Coal India Share Price Performance  

As of December 19, 2025, at 11:10 AM, Bharat Petroleum Corporation Limited share price is trading at ₹364.50 per share, reflecting a gain of 0.32% from the previous closing price.  

As of December 19, 2025, at 11:10 AM, Coal India Limited share price is trading at ₹383.70 per share, reflecting a decline of 0.42% from the previous closing price.  

Conclusion 

The BPCL–Coal India joint venture marks a strategic collaboration focused on advancing coal gasification and synthetic natural gas production in India. By leveraging complementary capabilities, the project is positioned to support cleaner energy transitions while enhancing domestic fuel availability and long-term energy resilience. 

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