Prime Minister Narendra Modi will lay the foundation stone of India's first commercial-scale coal-to-ammonium nitrate project at Lakhanpur in Jharsuguda district, Odisha, on June 20, 2026. The project has an estimated cost of Rs 250.16 bn and will be developed as a model coal gasification facility to strengthen energy security and reduce import dependence. It is being built by Bharat Coal Gasification and Chemicals Limited, a joint venture of Bharat Heavy Electricals Limited and Coal India Limited. The facility is designed to produce 2,000 tonne (t) per day of ammonium nitrate.

Coal gasification converts coal into synthesis gas to support production of methanol, urea, ammonium nitrate and synthetic natural gas, adding value to domestic resources. The Government of India has framed incentive schemes with a cumulative outlay of Rs 460 bn to promote surface coal and lignite gasification projects. The ministry has enabled use of coal bearing area land for such ventures.

The initiative is intended to reduce annual imports of chemical products currently valued at about Rs 2.7 tn and to catalyse investments of between Rs 2.5 tn and Rs 3 tn, potentially creating around 50,000 direct and indirect jobs across 25 projects. Lakhanpur will be sited on roughly 350 acres under Mahanadi Coalfields Limited after a land lease agreement signed in April. The project has obtained required clearances and work is expected to start after the foundation ceremony. The Union Ministry of Coal is providing Rs 13.5 bn in support.

BCGCL will operate the plant and the initiative is presented as a template for future coal gasification ventures to strengthen domestic manufacturing and industrial resilience. The foundation stone laying is framed by the Government as a step towards promoting cleaner coal technologies, maximising value from indigenous resources and advancing the vision of Aatmanirbhar Bharat.