PM To Lay Foundation Stone For First Coal To Ammonium Nitrate Project
COAL & MINING

PM To Lay Foundation Stone For First Coal To Ammonium Nitrate Project

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

PMC Approves Rs 5.78 bn Waste Processing Contract

The Pune Municipal Corporation approved a Rs 5.7796 billion (bn) fifteen-year contract to process 500 metric tonnes (t) of waste daily at the Devachi Uruli depot and allowed unauthorised overhead cables to remain temporarily for one year subject to a fee. The decision was taken by the civic body to appoint a private operator for an integrated waste facility covering about 12 acres. The approval frames the contract as an operational arrangement with a fixed base rate and annual adjustments. The contract was awarded to Bhoomi Green Energy Envirocare LLP, which quoted Rs 772 per t, compared with ..

Next Story
Infrastructure Urban

Kerala High Court to Inspect Brahmapuram Waste Plant

Two judges of the Kerala High Court, Justice Bechu Kurian Thomas and Justice Gopinath P, will inspect the Brahmapuram waste management plant on 11 September as part of the suo motu proceeding on the plant's maintenance. The inspection was scheduled to allow the bench to assess conditions on site and to verify representations made by municipal and state authorities. The court listed the site visit during a hearing and directed officials to prepare for an on-site review. The bench instructed authorities to file a detailed report on the plant's present functioning ahead of the visit. It said the ..

Next Story
Infrastructure Transport

Ahmedabad Geetamandir Bus Port Terminal Two Ready with Airport Facilities

Ahmedabad’s Geetamandir Bus Port has completed a separate Terminal Two, which is ready to serve passengers travelling to Saurashtra-Kutch and North Gujarat. The facility has been developed with airport like facilities to improve passenger comfort and ease of travel. Deputy Chief Minister Harsh Sanghvi is scheduled to inaugurate the new terminal today. Authorities say the design focuses on smoother boarding and reduced congestion. Terminal Two will become operational from 13 August and is expected to handle 1,091 buses daily servicing routes to Saurashtra-Kutch and North Gujarat. The new arra..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement