NTPC to invest ₹10,000cr in coal-to-SNG facility in Chhattisgarh
11 Jan 2026

State-owned power giant NTPC has announced its plan to set up a coal-to-synthetic natural gas (SNG) facility in Chhattisgarh.

The project will be developed at an estimated cost of ₹10,000 crore.

The company is looking for technology partnerships for processes such as coal beneficiation as well as gasification to produce SNG.

NTPC's SNG production cost target
Cost estimation

NTPC aims to produce SNG at a cost of around $12 per million British thermal units (MMBTU).

The company had earlier signed an agreement with Engineers India Limited (EIL) in October 2025, for the development of this facility.

The project will utilize high-ash Indian coal from the NTPC's captive mines.

NETRA's role in SNG project
Project leadership

The project is being led by NETRA, NTPC's R&D wing.

This initiative falls under the company's larger vision of 'greening the coal' and promoting carbon capture and utilization technologies.

The facility will be set up at Talaipalli in Chhattisgarh and will spread over an area of 150 acres. It will consume 25 lakh tons of coal sourced from NTPC mines at Talaipalli.

Technology finalization and project preparations
Project progress

The technology for the project is expected to be finalized by the last quarter of FY26.

NTPC is in advanced stages of various international tie-ups for this purpose.

After finalizing the technology, the company will start preparations for other requirements such as land, power, and water supply to set up this facility.

A sustainable solution for domestic coal reserves
Environmental impact

Coal gasification is being seen as a key enabler for the sustainable utilization of domestic coal reserves.

It can help reduce dependence on imported fuels and lower emissions.

The syn gas produced from coal gasification can be used to make energy fuel (methanol and ethanol), ammonia for fertilizers, as well as petrochemicals.