Coal India Limited (CIL) is set to ink three major Memorandum of Undertaking (MoU) for setting up of coal-to-chemical projects through Surface Coal Gasification (SCG) route next week.

CIL will be joining hands with three other major PSUs - Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL) and GAIL (India) for setting up four SCG projects.

Through SCG route coal is converted into syngas that can be subsequently processed for downstream production of value added chemicals. These are otherwise produced through imported natural gas or crude oil. Envisaged end products would be di-methyl ether, synthetic natural gas, and ammonium nitrate.

The upside of the proposed projects is reduced forex outgo and direct and indirect employment generation to the tune of 23,000.

With the twin objectives of self-reliance and energy independence, the Ministry of Coal has set a target for achieving 100 million tonne coal gasification by 2030.