GAIL sign pact with CIL to set up coal gasification project

New Delhi: GAIL India Ltd on Thursday said it has signed a pact with Coal India Ltd to set up a coal gasification project for production of a gas used to make fertilisers.

The project will use 5,000 tonnes of coal a day to make 7.76 million standard cubic meters a day of gas, GAIL said in a statement to the Bombay Stock Exchange today. The gas produced will be used to make 3,500 tonnes of urea per day, the company said.

The project would need an investment of around Rs 2,400 crore, it said, without giving details on the individual contributions of the two companies.

“The two companies will form a joint working group to evaluate a detailed feasibility report prepared by GAIL to evaluate the viability of the project,” said the statement.