Bharat Petroleum Corporation (BPCL) and Coal India Ltd (CIL) have announced a joint venture to invest Rs 12,000 crore in a coal gasification project in Chandrapur, Maharashtra. The project, with CIL holding a 51% stake and BPCL owning 49%, aims to produce 1.83 million standard cubic metres of gas per day. This initiative aligns with India's National Coal Gasification Mission, focusing on cleaner energy production. The gas produced through coal gasification will act as a cleaner alternative to traditional coal use, supporting both commercial and captive applications. Additionally, the project opens avenues for producing synthetic natural gas (SNG) as well as hydrogen for transportation and power generation. For BPCL, this marks a significant move towards adopting cleaner energy solutions, while CIL sees it as a strategy to diversify their coal utilization and enhance energy security. To support such coal gasification projects, the government is providing Rs 8,500 crore in viability gap funding (VGF), with Rs 1,350 crore allocated specifically for this project. This financial assistance is crucial in achieving India's gasification targets set for 2030. The partnership between BPCL and CIL not only signifies a collaborative effort towards sustainable energy but also highlights the importance of innovation and diversification in the energy sector.