Coal India Signs MoU with HURL to Explore Coal Gasification-Based Urea Project in Jharkhand
New Delhi, October 5, 2026: Coal India Limited (CIL), India’s largest coal producer, has signed a non-binding Memorandum of Understanding (MoU) with Hindustan Urvarak & Rasayan Limited (HURL) to explore the development of a coal gasification-based urea production project at Sindri in Jharkhand.
The agreement, executed on September 29, 2026, marks another step in Coal India’s efforts to diversify beyond conventional coal mining and expand into coal-to-chemicals and fertiliser production. The immediate focus will be on assessing the project’s technical and commercial viability before any final investment decision is taken.
Coal Gasification to Support Domestic Fertiliser Production
Under the proposed initiative, the two companies will examine the feasibility of using domestic coal to produce synthesis gas, commonly known as syngas. This gas can be processed to manufacture ammonia, which is a key raw material for urea fertiliser production.
The collaboration brings together Coal India’s experience in coal mining and resource management with HURL’s expertise in fertiliser manufacturing and plant operations.
The proposed project is expected to be evaluated through a Preliminary Feasibility Report (PFR), which will examine technical requirements, commercial viability and implementation arrangements. No final investment amount or project completion timeline has been announced so far. <Cite refs={[“turn488770search10″,”turn488770news4”]}/>
Sindri Plant in Focus
Sindri, in Jharkhand’s Dhanbad district, is an established fertiliser production centre. The proposed project would explore the use of coal gasification technology to support ammonia and urea manufacturing at HURL’s Sindri unit.
Coal gasification converts coal into a mixture of gases that can serve as feedstock for producing chemicals and fertilisers. The technology offers a potential route to use India’s domestic coal resources for products that traditionally depend on natural gas and other industrial inputs.
However, the proposed project remains at the exploratory stage. Its progress will depend on the findings of the feasibility assessment and subsequent decisions by the companies.
Boost to India’s Fertiliser and Energy Security
India’s fertiliser sector plays a critical role in supporting agricultural productivity, and reliable supplies of urea are essential for farmers across the country.
Developing alternative production pathways using domestic resources could help diversify feedstock options and potentially reduce exposure to international supply disruptions. The extent of any reduction in import dependence would depend on the project’s eventual scale, economics and operational performance.
For Coal India, the proposed partnership is also part of a broader strategy to develop downstream businesses and generate additional value from its coal resources. The company has been pursuing coal-to-chemicals initiatives involving products such as urea, ammonium nitrate, methanol and synthetic natural gas.
What Happens Next?
The immediate priority for Coal India and HURL is to assess whether the proposed coal gasification-based urea facility is technically feasible and commercially sustainable.
The non-binding MoU does not constitute a final construction or investment commitment. Further progress will depend on the feasibility report, project economics, technology selection and the necessary approvals.
If the project advances, it could strengthen the integration between India’s coal and fertiliser industries while expanding the use of coal in chemical manufacturing.
Conclusion: Coal India’s agreement with HURL marks a fresh step towards exploring coal gasification for fertiliser production in India. While the project has the potential to support resource utilisation and domestic urea manufacturing, its ultimate impact will depend on the results of the feasibility study and the decisions that follow.