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State-owned NTPC plans to invest around INR 10,000 crore to set up a coal-to-synthetic natural gas (SNG) facility at Talaipalli in Chhattisgarh, strengthening fuel diversification and domestic coal utilisation. Spread over nearly 150 acres, the plant will produce about 5 lakh tonnes of SNG annually using coal from NTPC's captive mines. The project will deploy advanced gasification and methanation technologies, with final tie-ups expected by FY26-end. Beyond SNG, the facility can support production of fuels and petrochemicals, boosting industrial activity. The project is expected to create jobs, drive demand for infrastructure, and position Chhattisgarh as a key hub for cleaner, technology-led energy and industrial development.
State-owned power major NTPC is set to establish a coal-to-synthetic natural gas (SNG) facility in Chhattisgarh with an estimated investment of around INR 10,000 crore, according to a senior company official. The project will be located at Talaipalli in the state and marks a significant step in NTPC's efforts to diversify fuel sources and improve the utilisation of domestic coal reserves. Advertisement
The proposed facility will have a production capacity of 5 lakh tonnes of synthetic natural gas per annum. It will be spread across nearly 150 acres and will use about 2.5 million tonnes of coal annually, sourced from NTPC's captive coal mines at Talaipalli. The project is expected to support industrial development in the region while creating demand for supporting infrastructure, utilities, and skilled manpower.
NTPC is currently exploring technology partnerships for key processes involved in coal-to-SNG production. These include coal beneficiation, gasification, water gas shift, and methanation. The company aims to produce synthetic natural gas at a cost of around USD 12 per million British thermal unit (MMBTU), the official said. Finalisation of the technology framework is expected by the last quarter of the 2025-26 financial year.
In October 2025, NTPC had announced a collaboration with Engineers India Limited to develop a coal-to-SNG facility. While details such as project location were not disclosed at the time, the company had stated that the plant would utilise high-ash Indian coal from its captive mines. The Talaipalli project now provides clarity on the scale and location of this initiative.
NETRA, NTPC's research and development arm, is leading the project as part of the company's broader strategy of greening the coal. The initiative also aligns with NTPC's focus on advancing carbon capture, utilisation, and cleaner fuel technologies. Coal gasification is increasingly being viewed as a way to reduce dependence on imported fuels while making better use of domestic coal resources.
Beyond synthetic natural gas, the syngas produced through coal gasification can be used to manufacture products such as methanol, ethanol, ammonia for fertilisers, and other petrochemicals. This opens up potential commercial opportunities across multiple industrial segments, strengthening the project's long-term viability.
Once the technology tie-ups are finalised, NTPC will begin preparations related to land development, power supply, and water infrastructure required for the project. Large-scale energy and industrial projects of this nature typically act as anchors for regional growth, driving demand for industrial land, logistics facilities, worker housing, and allied services.
Chhattisgarh has been emerging as a key hub for power generation and resource-based industries. The proposed NTPC project at Talaipalli is expected to further enhance the state's industrial profile while supporting India's broader goals of energy security, fuel diversification, and sustainable use of natural resources.
Source: PTI
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