Lok Sabha Question No. 834 (UNSTARRED), answered on 2026-02-04
Subject: Coal to Synthetic Natural Gas Production
Ministry: COAL
Asked by: Shri Tatkare Sunil Dattatrey

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 834

TO BE ANSWERED ON 04/02/2026

## COAL TO SYNTHETIC NATURAL GAS PRODUCTION

## 834.     SHRI TATKARE SUNIL DATTATREY:

Will the Minister of COAL be pleased to state:

- (a)  the  various  initiatives  taken  by  the  Government  to  launch  coal  to  synthetic  natural  gas production in the country;

(b) the manner in which Synthetic Natural Gas (SNG) can be beneficial for meeting energy demand and environmental targets of the country;

(c) the target set for synthetic natural gas production in the country along with the industries in which synthetic natural gas likely to be used;

(d) the regions which have been identified for high potential for production of synthetic natural gas;

- (e) the details of collaboration with other Public Sector Undertakings (PSUs) for production of synthetic natural gas along with the role of private sector in production of synthetic natural gas;

(f) the status of production of coal bed methane in the country along with the role of PSUs and private sector in Coal Bed Methane production; and

(g)  the  regions  which  have  been  identified  for  high  potential  for  production  of  coal  bed methane?

## ANSWER

## MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a):  Government of India has identified coal gasification, including coal-to-Synthetic Natural Gas (SNG), as a key pathway for cleaner utilisation of domestic coal. In commercial coal block auctions,  50%  rebate  in  revenue  share  is  being  provided  for  the  coal  used  for  gasification purposes provided the coal quantity used for coal gasification is  at least 10 % of the total production.  A  Financial  Incentive  Scheme  of  ₹8,500  crore  has  been  approved  to  promote coal/lignite  gasification  projects,  including  SNG.  Two  coal-to-SNG  projects  are  being undertaken by PSUs as under:-

- I. Coal Gas India Limited (CGIL) - a joint venture of Coal India Limited (CIL) and Gas Authority of India Limited (GAIL)) is setting up a coal-to-SNG Plant of 633.6 Million Nm3 (1.83 MMSCMD) capacity at Bardhaman, West Bengal.
- II. CIL (MoU with BPCL) is setting up a coal-to-SNG Plant of 633.6 Million Nm3 (1.83 MMSCMD) capacity at Chandrapur, Maharashtra.

(b):  Synthetic Natural Gas, produced from  syngas through gasification of coal, can serve as an effective substitute for imported natural gas to meet requirements of chemical and power sectors, thereby strengthening national energy security.

Further,  compared  to  direct  coal  or  oil  usage,  the  combustion  of  SNG  results  in significantly lower emissions of particulate matter, sulfur oxides (SOₓ), and nitrogen oxides (NOₓ), leading to improved air quality and public health. Accordingly, SNG has the potential to support India's environmental and sustainability objectives.

(c) and (d):  As per Preliminary Feasibility Report (PFR), the CGIL project at Sonepur Bazari area in ECL, West Bengal and the CIL Project in WCL, Maharastra are each estimated to produce 633.6 Million Nm³ (1.83 MMSCMD) of SNG per annum. These are likely areas for SNG production through coal gasification. SNG, being a substitute for natural gas, finds it use in chemical and power sectors thereby ensuring energy security.

(e):   CIL has formed a Joint Venture with GAIL and also signed an MoU with BPCL for production of coal-based SNG project through surface coal gasification.

(f):   At  present,  fifteen  (15)  Coal  Bed  Methane  (CBM)  blocks  are  active  for  exploration, development or production phases across India.  Of these 15 CBM blocks, 6 blocks are in production stage, 7 blocks are in exploration stage and the remaining 2 are in the development stage. The cumulative CBM production has reached 7.1 Billion Cubic Meter (BCM) up to March, 2025, with the current production rate of about 2.27 MMSCMD. At present, 9 operators (both PSUs and Private Sector) are engaged in CBM exploration and development.

(g):  The  potential  for  production  of  Coal  Bed  Methane  (CBM)  in  the  country  has  been identified  mainly  in  the  coal-bearing  sedimentary  basins.  High  potential  regions  include coalfields  located  in  the  States  of  Jharkhand,  West  Bengal,  Madhya  Pradesh,  Rajasthan, Gujarat,  Odisha,  Chhattisgarh,  Tamil  Nadu,  Telangana,  Andhra  Pradesh,  Maharashtra  and North-East.

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