CIL, HURL to explore coal gasification-based urea production in Jharkhand

Coal India Ltd (CIL) and Hindustan Urvarak & Rasayan Limited (HURL) have executed a memorandum of understanding to explore the development of a coal gasification-based urea production facility at Sindri in Jharkhand, the state-owned coal producer announced Tuesday. The non-binding agreement, signed on September 29, 2026, marks a significant step toward leveraging indigenous coal resources for fertiliser manufacturing.

Under the MoU framework, the two companies will initially focus on examining the technical, commercial and execution modalities of the project. The partners will also prepare a preliminary feasibility report to comprehensively assess the viability of establishing syngas-based urea production at the Sindri location.

The initiative gains prominence amid the Centre's broader push to promote coal gasification as part of its strategy to reduce India's dependence on imported natural gas and other feedstocks for fertiliser production. Coal gasification converts coal into syngas—a mixture of carbon monoxide and hydrogen—which can serve as a feedstock for urea synthesis, offering an alternative to conventional production methods.

As a Maharatna public sector enterprise, CIL's involvement underscores the government's commitment to maximizing domestic coal utilization across industrial sectors. The project, if progressed beyond the feasibility stage, could strengthen India's fertiliser self-sufficiency while creating additional value from its vast coal reserves.