Coal To Ammonium Nitrate Project Laid At Lakhanpur

24 Jun 2026 CW Team

BCGCL is a joint venture between Coal India Limited and Bharat Heavy Electricals Limited with Coal India Limited holding 51 per cent equity and Bharat Heavy Electricals Limited holding 49 per cent. Mahanadi Coalfields Limited will contribute approximately 350 acres of coal-bearing land at Lakhanpur and will supply 0.79 million tonnes (0.79 mn t) per year of washed coal and 1.19 million tonnes (1.19 mn t) per year of reject from its Ib Valley washery. The project is aimed to produce approximately 0.66 million tonnes per annum (0.66 mn t per annum) of technical grade ammonium nitrate using domestically developed Pressurised Fluidised Bed Gasification technology.

The scheme has received statutory and environmental approvals and single window clearance from the High-Level Clearance Authority of the Government of Odisha, and a number of lump sum turnkey execution packages have been awarded. The project is being developed at an estimated investment of over Rs 250,000 million (Rs 250 bn) and the Ministry of Coal has granted financial incentives of Rs 13,500 million (Rs 13.5 bn) to support commercialisation of indigenous coal gasification technology. Officials indicated that financial support and major clearances provide a strong impetus to the project, which targets commissioning by September 2029.

Authorities anticipate that the initiative will generate significant employment for regional youth, promote skill development and stimulate ancillary industries and services in the region. The project is aligned with the National Coal Gasification Mission and is expected to serve as a model for future coal-to-chemicals projects across India. The presence of state and union ministers at the ceremony underlined the centrality of the programme to national industrial and energy objectives.

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On twenty June 2026 the President of India Droupadi Murmu and the Prime Minister Narendra Modi remotely laid the foundation stone of the Coal-to-Ammonium Nitrate Project of Bharat Coal Gasification & Chemicals Limited at Lakhanpur in Jharsuguda district of Odisha. The ceremony was described as a landmark step towards India’s energy security, technological self-reliance and sustainable use of domestic coal resources. Senior state and union officials attended the event. BCGCL is a joint venture between Coal India Limited and Bharat Heavy Electricals Limited with Coal India Limited holding 51 per cent equity and Bharat Heavy Electricals Limited holding 49 per cent. Mahanadi Coalfields Limited will contribute approximately 350 acres of coal-bearing land at Lakhanpur and will supply 0.79 million tonnes (0.79 mn t) per year of washed coal and 1.19 million tonnes (1.19 mn t) per year of reject from its Ib Valley washery. The project is aimed to produce approximately 0.66 million tonnes per annum (0.66 mn t per annum) of technical grade ammonium nitrate using domestically developed Pressurised Fluidised Bed Gasification technology. The scheme has received statutory and environmental approvals and single window clearance from the High-Level Clearance Authority of the Government of Odisha, and a number of lump sum turnkey execution packages have been awarded. The project is being developed at an estimated investment of over Rs 250,000 million (Rs 250 bn) and the Ministry of Coal has granted financial incentives of Rs 13,500 million (Rs 13.5 bn) to support commercialisation of indigenous coal gasification technology. Officials indicated that financial support and major clearances provide a strong impetus to the project, which targets commissioning by September 2029. Authorities anticipate that the initiative will generate significant employment for regional youth, promote skill development and stimulate ancillary industries and services in the region. The project is aligned with the National Coal Gasification Mission and is expected to serve as a model for future coal-to-chemicals projects across India. The presence of state and union ministers at the ceremony underlined the centrality of the programme to national industrial and energy objectives.

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