The MoU sets out a collaborative framework to assess the feasibility of gasifying coal from GMDC’s coal blocks in Odisha and lignite from its mining operations in Gujarat.

As part of the agreement, GMDC will undertake pilot initiatives, including surface and underground coal and lignite gasification, to evaluate technical feasibility, operational parameters and scalability. NTPC, on the other hand, will assess potential end-use applications of syngas produced, including techno-commercial viability and market opportunities across relevant industrial sectors.

Subject to successful pilot outcomes, the two companies plan to evolve mutually agreed frameworks for joint production, marketing and commercialisation of syngas. They will also formulate a clearly defined, time-bound action plan to ensure systematic progress of the initiative.

GMDC said it has already initiated preliminary assessments for commercialisation of downstream products and is in the process of engaging technical partners for detailed feasibility studies. The MoU is expected to strengthen these efforts by leveraging NTPC’s expertise in large-scale energy systems and project execution.

Commenting on the development, Roopwant Singh, managing director (MD), GMDC, said the collaboration underscores the company’s commitment to innovation-led growth and optimal utilisation of mineral resources, while supporting national goals of energy security and industrial development.

GMDC, India’s second-largest lignite producer and the leading merchant seller of lignite, is a state-owned enterprise with the Gujarat government holding a 74% stake. The company mines lignite from deposit-rich regions across the state and supplies it to high-growth industries such as textiles, chemicals, ceramics, bricks, and captive power. The scrip fell 0.47% to Rs 573.50 on the BSE.

NTPC, along with its subsidiaries/associates & JVs, is primarily involved in the generation and sale of bulk power to state power utilities. Other business of the group includes providing consultancy, project management & supervision, energy trading, oil & gas exploration, and coal mining. The scrip rose 0.58% to Rs 384.05 on the BSE.