In a landmark step towards India’s vision of achieving energy security, technological self-reliance, and sustainable utilization of domestic coal resources, President Droupadi Murmu and Prime Minister Narendra Modi remotely laid the foundation stone of the Coal-to-Ammonium Nitrate Project of Bharat Coal Gasification & Chemicals Limited (BCGCL) today at Lakhanpur in Odisha’s Jharsuguda district.
On this occasion, Union Minister of Coal and Mines G Kishan Reddy, in his press briefing at the project site in Lakhanpur, congratulated the people of Jharsuguda for the upcoming project. This joint venture between Coal India Ltd and BHEL marks the beginning of a new era of coal processing in the nation, which will promote indigenous coal gasification technology and facilitate the conversion of India’s abundant coal resources into value-added chemicals.
The project is expected to generate significant employment to the regional youth, promote skill development, and drive regional economic growth through the development of ancillary industries and services, he added.
BCGCL is a Joint Venture Company formed between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), with CIL holding 51% equity and BHEL holding 49% equity. Mahanadi Coalfields Limited (MCL) a subsidiary company of Coal India Limited is contributing approximate 350 acres of its coal-bearing land in Lakhanpur, where the BCGCL project will be constructed. Further, MCL will meet the coal requirement for this project supplying 0.79 MTY of washed coal and 1.19 MTY of reject from its Ib Valley washery.
Aligned with cental government’s National Coal Gasification Mission, the project is expected to serve as a model for future coal-to-chemicals projects across the country. The project is aimed to produce approximately 0.66 Million Tonnes Per Annum (MTPA) of Technical Grade Ammonium Nitrate through coal gasification and represents one of India’s pioneering commercial-scale initiatives utilizing domestically developed Pressurised Fluidised Bed Gasification (PFBG) technology for chemical production.
The project being developed at an estimated investment of over Rs 25000 crore, has received Single Window Clearance from the High-Level Clearance Authority (HLCA) and has also been granted financial incentives of Rs 1,350 crore by the Ministry of Coal, providing a major impetus to the commercialization of indigenous coal gasification technology.
With all key statutory and environmental approvals, major clearances in place, financial support secured, and Lump Sum Turnkey execution packages awarded, the project is targeted commissioning schedule by September 2029 and is expected to emerge as a flagship project demonstrating India’s capability in converting coal into high-value chemical products through indigenous technology.
Odisha Governor Hari Babu Kambhampati; CM Mohan Majhi, Deputy CMs Kanak Vardhan Singh Deo and Pravati Parida, Satish Chandra Dubey, Union Minister of State for Coal and Mines, MP, MLA and other dignitaries were also present during the ceremony.
