On April 1, 2026 , A landmark land leasing agreement was signed for a major Coal to Ammonium Nitrate Project at Lakhanpur in the Jharsuguda district of Odisha. this Project initiative by Bharat Coal Gasification and Chemicals Limited (BCGCL) , a joint venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL) marks a historic step in India’s coal gasification roadmap..
Project Overview data
- it is designed to be India’s first coal gasification project using indigenously developed technology.
- produce 2,000 tonnes per day (TPD) of ammonium nitrate
- Deploys BHEL’s homegrown Pressurised Fluidised Bed Gasification (PFBG) technology to lead the Project
- An estimated total investment of approximately ₹25,000 crore.
- Spread over approximately 350 acres of land provided by Mahanadi Coalfields Limited (MCL).
Strategic Significance of Projects
The project aligns with the National Coal Gasification Mission, which aims to gasify 100 million tonnes of coal annually by 2030..
- By producing ammonium nitrate domestically, the project aims to reduce dependence on imported fertilisers and industrial chemicals.
- The Ministry of Coal has extended ₹1,350 crore in financial incentives to promote this gasification initiative.
- Coal gasification is considered more environmentally friendly than direct coal-fired processes
Preliminary site development activities are underway following the signing of the land lease agreement, Lump Sum Turnkey (LSTK) packages have been awarded to BHEL for the gasification and raw syngas cleaning plant and Larsen & Toubro,The plant is expected to be operational within 42 months from the start of execution ..
The Talcher Fertilizers Limited (TFL) project, which is also a coal gasification-based initiative , focused on urea in place of Coal , is currently under construction and scheduled for commissioning by December 2027..
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