NLC India Ltd (NLCIL) and Reliance Industries Ltd (RIL) have entered into a partnership to explore the development of an underground lignite gasification project in Gujarat. This initiative is part of efforts to enhance domestic gas supplies amid a global fuel shortage. NLCIL, a state-run entity, holds two lignite blocks in Gujarat that are being assessed for their feasibility in gasification. The project aims to convert lignite reserves into synthesis gas, which can be utilized in various industrial applications, thereby reducing dependence on imported liquefied natural gas (LNG). Additionally, NLCIL is planning a lignite-to-methanol plant in Neyveli, Tamil Nadu, projected to cost ₹4,394 crore. This aligns with the Indian government's recent approval of a ₹37,500 crore scheme to promote coal and lignite gasification, targeting the gasification of 100 million tonnes of coal by 2030. The collaboration with Reliance is expected to leverage their expertise in gasification technologies, potentially accelerating project development and mitigating technical risks.