BCGCL, MCL Ink Land Leasing Pact For Coal To Ammonium In Odisha

06 Apr 2026 CW Team

The initiative is being presented as India’s first major coal gasification scheme using homegrown technology from Bharat Heavy Electricals Limited (BHEL). The move is intended to strengthen domestic technological capacity and to reduce reliance on foreign technology in energy and chemicals sectors, the coal ministry said. Officials indicated the project will serve as a template for future coal to chemicals ventures if implemented successfully.

The plant is expected to contribute to domestic supply chains for fertilisers and industrial chemicals and to support national efforts to enhance self-reliance in strategic inputs. Stakeholders noted that indigenous gasification routes can diversify feedstock options and complement existing production capacities. Project proponents expect the facility to catalyse local economic activity through construction and ancillary services without providing specific employment figures.

The land leasing pact follows broader policy emphasis on scaling up domestic coal gasification and advancing technological collaboration between public sector entities. Company and government sources said further approvals and detailed project reports will be completed as the partners finalise implementation plans. The agreement consequently represents a strategic step towards operationalising a homegrown coal to ammonium nitrate capability in Odisha. Observers said the project aligns with national goals for secure supplies of fertiliser inputs and for promoting cleaner manufacturing pathways.

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Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields Limited (MCL) have signed a land leasing agreement for a proposed coal to ammonium nitrate plant in Odisha. The project envisages a coal to 2,000 tonne (t) per day ammonium nitrate facility and is being advanced as part of national coal gasification ambitions. The agreement covers allocation of land required for project development and positions the partners to move into detailed engineering and regulatory clearances. The initiative is being presented as India’s first major coal gasification scheme using homegrown technology from Bharat Heavy Electricals Limited (BHEL). The move is intended to strengthen domestic technological capacity and to reduce reliance on foreign technology in energy and chemicals sectors, the coal ministry said. Officials indicated the project will serve as a template for future coal to chemicals ventures if implemented successfully. The plant is expected to contribute to domestic supply chains for fertilisers and industrial chemicals and to support national efforts to enhance self-reliance in strategic inputs. Stakeholders noted that indigenous gasification routes can diversify feedstock options and complement existing production capacities. Project proponents expect the facility to catalyse local economic activity through construction and ancillary services without providing specific employment figures. The land leasing pact follows broader policy emphasis on scaling up domestic coal gasification and advancing technological collaboration between public sector entities. Company and government sources said further approvals and detailed project reports will be completed as the partners finalise implementation plans. The agreement consequently represents a strategic step towards operationalising a homegrown coal to ammonium nitrate capability in Odisha. Observers said the project aligns with national goals for secure supplies of fertiliser inputs and for promoting cleaner manufacturing pathways.

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