President, PM Lay Foundation Stone for Rs 25,000-Cr Coal-to-Ammonium Nitrate Project in Odisha
Jharsuguda, June 20 (UNI): President Droupadi Murmu and Prime Minister Narendra Modi on Saturday remotely laid the foundation stone for the Coal-to-Ammonium Nitrate Project of Bharat Coal Gasification & Chemicals Limited (BCGCL) at Lakhanpur in Odisha’s Jharsuguda district, marking a major step towards India’s energy security and coal gasification mission.
The project, being developed at an estimated investment of over ₹25,000 crore, is aimed at producing around 0.66 million tonnes per annum (MTPA) of technical-grade ammonium nitrate through coal gasification using indigenous technology.
Odisha Governor Hari Babu Kambhampati, Chief Minister Mohan Charan Majhi, Union Coal and Mines Minister G. Kishan Reddy, Deputy Chief Ministers Kanak Vardhan Singh Deo and Pravati Parida, Union Minister of State for Coal and Mines Satish Chandra Dubey, MPs, MLAs and other dignitaries attended the event.
Addressing the media at the project site, Kishan Reddy said the venture marked the beginning of a new era in coal processing and value-added chemical production in India.
He said the project would promote indigenous coal gasification technology, generate substantial employment opportunities for local youth, encourage skill development and stimulate regional economic growth through ancillary industries and services.
BCGCL is a joint venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), with CIL holding a 51 per cent stake and BHEL 49 per cent.
Mahanadi Coalfields Limited (MCL), a subsidiary of CIL, has allocated around 350 acres of coal-bearing land at Lakhanpur for the project and will supply 0.79 million tonnes of washed coal and 1.19 million tonnes of washery rejects annually from its Ib Valley Washery to meet the plant’s feedstock requirements.
The project is aligned with the Government of India’s National Coal Gasification Mission and is expected to serve as a model for future coal-to-chemical projects across the country.
According to officials, the project has received single-window clearance from the Odisha Government’s High-Level Clearance Authority and financial incentives worth ₹1,350 crore from the Ministry of Coal.
With key statutory, environmental and regulatory approvals already secured and major execution packages awarded, the project is scheduled for commissioning by September 2029.
Officials said the project would emerge as a flagship initiative demonstrating India’s capability to convert domestic coal resources into high-value chemical products through indigenously developed Pressurised Fluidised Bed Gasification (PFBG) technology.
TNT KM
