A renewed push to locate the headquarters of a proposed ₹12,215-crore Synthetic Natural Gas (SNG) project in Nagpur has gathered momentum, with Union minister Nitin Gadkari urging top officials of Coal India Ltd and Bharat Petroleum Corporation Ltd to consider the move.
The proposal, led by the Association for Industrial Development (AID), seeks to relocate the project's administrative base from Mumbai to Nagpur, arguing that proximity to the plant site and regional balance make a compelling case. AID President Ashish Kale recently submitted a representation outlining these factors, prompting Gadkari's intervention.
Gadkari's Intervention
In his communication to senior executives of Coal India Ltd (CIL) and Bharat Petroleum Corporation Ltd (BPCL), Gadkari called for a "positive consideration" of Nagpur as the headquarters location, underscoring its logistical advantages and growing industrial ecosystem.
Project Details
The SNG project, based on coal gasification technology, is planned at Majri in Bhadravati tehsil of Chandrapur district. Conceived as a joint venture between the two public sector companies, the project is expected to generate employment for around 3,000 skilled and semi-skilled workers, adding to the region's industrial base.
AID's Arguments
AID has argued that situating the headquarters in Nagpur would improve operational efficiency by enabling closer coordination between management and the production site. "Nagpur offers a strategic advantage due to its proximity and infrastructure, which would support smoother execution and oversight," the representation stated.
The association has also framed the demand within the broader context of regional development, noting that locating key administrative hubs in Vidarbha could help address long-standing concerns over industrial concentration in Mumbai and promote more balanced economic growth across Maharashtra.
Decision Pending
While a formal decision is yet to be announced, the intervention by a senior Union minister is expected to weigh on deliberations within the two companies. Officials familiar with the project said the final call would hinge on a mix of operational, financial and administrative considerations.
The project itself is part of a larger push to expand coal gasification capacity in India, aimed at reducing dependence on imported natural gas and diversifying energy sources. If approved, the location of its headquarters could influence not just project execution but also the distribution of high-value administrative roles within the state.
For Nagpur, which has been positioning itself as a logistics and industrial hub, securing the headquarters would mark a major gain, reinforcing its role in the region's evolving industrial landscape, as per the VED officials.
