President & PM Lay Foundation Stone for Rs 25,000 Crore Coal-to-Ammonium Nitrate Project in Odisha
The project, being developed at an estimated investment of over Rs 25,000 crore, is one of India's first commercial-scale coal gasification projects aimed at producing approximately 0.66 million tonnes per annum (MTPA) of Technical Grade Ammonium Nitrate using indigenous technology.
BCGCL is a joint venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), with CIL holding a 51% stake and BHEL holding 49%. Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India, has provided around 350 acres of land in Lakhanpur for the project and will supply the required washed coal and washery rejects from its Ib Valley operations.
Speaking at the project site, Union Coal and Mines Minister G. Kishan Reddy said the project marks the beginning of a new era in coal processing and will promote indigenous coal gasification technology while converting domestic coal resources into value-added chemical products. He added that the project is expected to generate significant employment opportunities, support skill development and stimulate regional economic growth through the creation of ancillary industries and services.
Aligned with the Government of India's National Coal Gasification Mission, the facility will utilise domestically developed Pressurised Fluidised Bed Gasification (PFBG) technology and is expected to serve as a model for future coal-to-chemicals projects across the country.
The project has received Single Window Clearance from the Government of Odisha's High-Level Clearance Authority and financial incentives worth Rs 1,350 crore from the Ministry of Coal. With key statutory approvals, environmental clearances and execution packages already in place, the project is targeted for commissioning by September 2029.
Once operational, the facility is expected to strengthen India's self-reliance in industrial chemicals, reduce import dependence and demonstrate the commercial viability of indigenous coal gasification technologies.
Published on:
22 June 2026
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