BCGCL–MCL Sign Land Lease for Rs 25,000 Crore Coal-to-Ammonium Nitrate Project in Odisha

Bharat Coal Gasification and Chemicals Limited and Mahanadi Coalfields Limited have signed a landmark land leasing agreement for the Coal-to-Ammonium Nitrate project at Lakhanpur, marking a major step in advancing India’s coal gasification programme.

The project, with an estimated investment of around Rs 25,000 crore, involves setting up a 2,000 tonnes per day ammonium nitrate facility and will be developed using indigenously developed gasification technology by Bharat Heavy Electricals Limited. It will be the first coal gasification project in India based on indigenous technology.

Spread across approximately 350 acres of land under MCL, the project includes multiple engineering and construction packages, with key LSTK packages awarded to BHEL and Larsen & Toubro Limited. Initial site development works are already underway to ensure timely execution.

The project is supported by financial incentives of Rs 1,350 crore from the Ministry of Coal and is aimed at enhancing value-added utilisation of domestic coal resources, reducing import dependence, and strengthening India’s industrial and chemical manufacturing capabilities.

The development of this facility is expected to boost domestic production of ammonium nitrate, support industrial growth, and contribute to building a self-reliant and resilient energy and chemicals sector in India.