Coal India Ltd and ArcelorMittal Nippon Steel India have signed a memorandum of understanding to assess the feasibility of using synthetic gas produced from coal gasification at a proposed plant in Odisha, signalling a shift towards higher-value coal utilisation amid India’s energy policies.
Coal India Ltd and ArcelorMittal Nippon Steel India have signed a non-binding memorandum of understanding to examine whether synthetic gas from a proposed coal gasification plant could be used at, or next to, AMNS India’s pellet unit in Paradip, Odisha, according to a stock exchange filing by Coal India. The agreement, executed on August 12, is still at a feasibility stage and does not commit either side to build the project.
Under the plan, Coal India would develop the facility and pair it with carbon capture, utilisation and storage technology, while the two companies would first assess the technical, commercial and implementation details. They also intend to prepare a preliminary feasibility report to test whether the proposal makes sense operationally and financially, the filing said.
The move fits a broader push in India to find higher-value uses for domestic coal. In December 2025, the Ministry of Coal approved an ₹8,500 crore incentive scheme for coal gasification projects, aimed at producing syngas for fuels, chemicals, petrochemicals and power generation. Coal India has also been pressing ahead with diversification beyond mining, including gasification, critical minerals and renewable energy, according to ICICI Direct.
For ArcelorMittal Nippon Steel India, the proposal also aligns with its long-term raw material strategy. A July 2022 environmental impact assessment for the company’s integrated steel plant expansion in Odisha referred to coal and coke supply linkages for a larger operation, underscoring the group’s interest in securing inputs for growth. Coal India, meanwhile, is coming off a quarter in which profit was broadly flat even as revenue rose, with higher input costs, lower production and stronger offtake shaping the numbers.
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