NTPC to Establish ₹10,000 Crore Coal-to-SNG Facility in Chhattisgarh
NTPC plans to invest ₹10,000 crore in establishing a coal-to-synthetic natural gas facility at Talaipalli, Chhattisgarh. The project will produce 5 lakh tonnes of SNG annually using 25 lakh tonnes of coal from NTPC's captive mines across 150 acres. Technology partnerships are being finalized by Q4 FY26, with the initiative forming part of NTPC's 'greening the coal' strategy led by its R&D wing NETRA.
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NTPC has announced plans to establish a major coal-to-synthetic natural gas (SNG) facility in Chhattisgarh, marking a significant step in the company's diversification strategy. The project represents one of the largest investments in coal gasification technology in India, aimed at reducing dependency on imported fuels while advancing sustainable coal utilization.
Project Overview and Investment Details
The coal-to-SNG facility will be established at Talaipalli in Chhattisgarh with a substantial investment of approximately ₹10,000 crore. The project specifications demonstrate the scale and ambition of this initiative:
| Parameter: | Details |
|---|---|
| Location: | Talaipalli, Chhattisgarh |
| Total Investment: | ₹10,000 crore |
| Annual SNG Production: | 5 lakh tonnes |
| Project Area: | 150 acres |
| Coal Consumption: | 25 lakh tonnes annually |
| Coal Source: | NTPC captive mines at Talaipalli |
Technology Partnership and Development Timeline
NTPC is actively pursuing international technology partnerships for various critical processes involved in coal-to-SNG production. The company is seeking collaborations for coal beneficiation, coal gasification, water gas shift, and methanation processes. A senior company official indicated that NTPC aims to produce SNG at a cost of around USD 12 per million British thermal unit (MMBTU).
The technology finalization is expected to be completed within the last quarter of FY26. Following this milestone, NTPC will commence preparations for other project requirements including land acquisition, power supply arrangements, and water sourcing.
Strategic Initiative and Environmental Benefits
This project forms part of NTPC's broader 'greening the coal' vision, spearheaded by NETRA, the company's research and development wing. The initiative focuses on advancing carbon capture and utilization technologies while promoting sustainable coal usage. In October 2025, NTPC formalized its commitment by signing an agreement with Engineers India Limited (EIL) to develop the coal-to-SNG facility, utilizing high-ash Indian coal from the company's captive mines.
Commercial Applications and Market Potential
The coal gasification technology offers multiple commercial benefits beyond SNG production. The synthetic gas produced through coal gasification can be utilized for manufacturing various products:
- Synthetic natural gas (SNG) for energy applications
- Energy fuels including methanol and ethanol
- Ammonia for fertilizer production
- Petrochemicals for industrial applications
This diversification potential positions the project as a strategic asset that could generate multiple revenue streams while supporting India's energy security objectives. The facility will contribute to reducing the country's dependence on imported fuels while maximizing the utilization of domestic coal reserves through advanced gasification technologies.
Historical Stock Returns for NTPC
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.43% | +6.54% | +4.30% | +10.99% | +17.99% | +278.80% |
