NTPC Commits ₹10,000 Crore to Chhattisgarh Coal-to-SNG Project
Overview
NTPC plans a massive ₹10,000 crore coal-to-synthetic natural gas (SNG) project in Chhattisgarh's Talaipalli. The 5 lakh tonnes per annum facility will leverage high-ash Indian coal, with NTPC's R&D wing driving 'greening coal' initiatives. Technology tie-ups are in advanced stages, aiming for SNG production around $12/MMBTU, potentially boosting energy security and domestic resource utilization.
Stocks Mentioned
NTPC Limited, India's largest power producer, has committed ₹10,000 crore to establish a coal-to-synthetic natural gas (SNG) facility in Talaipalli, Chhattisgarh. The project, confirmed by a senior company official and announced on January 11, 2026, aims to leverage indigenous high-ash coal to enhance the nation's energy security and reduce import dependency.
Project Scale and Scope
The ambitious facility will boast an annual SNG production capacity of 5 lakh tonnes. It is slated to cover 150 acres and will consume an estimated 25 lakh tonnes of coal per year, sourced directly from NTPC's captive Talaipalli mines. The company is targeting a production cost of approximately $12 million British thermal units (MMBTU) for the SNG.
Technological Advancements
NTPC's research and development arm, NETRA, is spearheading this initiative under its 'greening the coal' vision, focusing on advanced carbon capture and utilization technologies. The company is actively pursuing international technology tie-ups for critical processes such as coal beneficiation and gasification. These essential agreements are expected to be finalized within the final quarter of the fiscal year 2025-26.
Strategic Importance
Coal gasification is emerging as a key technology for the sustainable utilization of India's substantial domestic coal reserves. This pathway not only diminishes reliance on imported fuels but also offers potential for lower emissions. The synthesis gas (syngas) produced from coal gasification holds promise for broader applications, including the production of methanol, ethanol, ammonia for fertilizers, and various petrochemicals.
NTPC signed an agreement with Engineers India Limited (EIL) in October 2025 to develop this coal-to-SNG facility. Following the finalization of technology partnerships, NTPC will proceed with securing other necessary resources like land, power, and water.
