Coal India Limited (CIL) and GAIL (India) Limited have entered into a Memorandum of Understanding (MoU) for jointly setting up of a surface coal gasification project for production of synthesis gas, to be used as feedstock, for fertilizer production. The MoU was signed on 10 January 2008 in New Delhi by Shri N C Jha, Director (Technical), CIL and Shri A K Purwaha, Director (Business Development), GAIL in presence of Shri Partha S Bhattacharyya, Chairman, CIL and Dr. U D Choubey, Chairman cum Managing Director, GAIL.

The project would entail an investment of around Rs.2400 crore for setting up the coal gasification plant. The two companies will form a joint Working Group to evaluate detailed feasibility report prepared by GAIL to evaluate the viability of the project in terms of techno-economic feasibility for the project.