Coal India Ltd. (CIL) has announced the formation of a subsidiary company, Bharat Coal Gasification and Chemicals Ltd (BCGCL), to pursue a coal-to-chemicals operation. CIL owns 51% of the new firm, with BHEL owning the remaining 49%.

In February, Coal India formed a joint venture with Bharat Heavy Electricals Ltd (BHEL) to develop a coal-to-chemicals company.

According to the stock exchange filing, NITI Aayog and the Department of Investment and Public Asset Management (DIPAM) have approved the formation of the joint venture business between BHEL and CIL.

Bharat Coal Gasification & Chemicals Ltd was formed to convert coal into chemicals, producing ammonia and nitric acid as intermediates and ammonium nitrate as the end product, according to the petition.