Jharsuguda: In a major boost to India’s coal gasification mission and industrial self-reliance, the foundation stone for the Bharat Coal Gasification & Chemicals Limited (BCGCL), A Joint Venture of Coal India Limited (CIL) and Bharat heavy Electricals Limited (BHEL) Coal-to-Ammonium Nitrate Project will be laid at Lakhanpur in Odisha, virtually by Prime Minister Narendra Modi on June 20th. With an estimated investment of around Rs. 25,000 crores, the project is among the largest coal gasification-based chemical ventures in the country.
The project is being developed as a joint venture between Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL), bringing together expertise in coal resource management and indigenous technology development. Officials said the initiative aligns with the Centre’s vision of Atmanirbhar Bharat, make in India and the National Coal Gasification Mission, which aims to gasify 100 million tonnes of coal by 2030.
The coal-to-ammonium nitrate plant will convert coal into high-value products such as ammonia, technical-grade ammonium nitrate and other industrial chemicals through coal gasification technology. The project is expected to reduce India’s dependence on imports of critical industrial chemicals, strengthen supply chain security and help conserve foreign exchange.
Asheesh Kumar, Chairman, BCGCL and Director (Business Development), Coal India Limited, said, “The foundation stone of this project will be laid virtually by our Hon’ble Prime Minister Narendra Modi. The Union Coal Minister G. Kishan Reddy and the Minister of State for Coal & Mines Satish Chandra Dubey will be present at the project site during the ceremony. At present, coal is primarily used in thermal power plants. However, coal has several alternative uses as it contains chemical compounds that can be converted into gas through the process of coal gasification. Similar to the Talcher Fertilizer Plant, where urea is produced from coal gasification, this project will manufacture ammonium nitrate. This plant will operate using indigenous (Swadeshi) technology. Once this technology is successfully established and proven, more such coal gasification plants can be developed across the country. Coal gasification can produce not only ammonium nitrate but also several other valuable chemicals, which will help India reduce its dependence on imports and move towards becoming self-reliant in critical industrial chemicals.”
The project incorporates energy-efficient systems and modern environmental safeguards. According to officials, coal gasification offers a cleaner pathway for coal utilization compared to conventional methods and supports the country’s efforts to derive greater value from domestic coal resources.
It is likely to attract ancillary industries, logistics operators, service providers and downstream chemical units, creating substantial direct and indirect employment opportunities during both the construction and operational phases.
