BCGCL, MCL Sign Pact For Coal-To-Ammonium Nitrate Project In Odisha

The agreement was signed in New Delhi in the presence of Union Minister of Coal and Mines G. Kishan Reddy. The project envisages the establishment of a 2,000 tonnes per day (TPD) ammonium nitrate facility and will be the first in India to deploy indigenously developed coal gasification technology by Bharat Heavy Electricals Limited. Spread over around 350 acres of land under MCL, the project has been facilitated by recent policy reforms allowing the use of Coal Bearing Area (CBA) land for coal gasification projects. The initiative is aimed at promoting value-added utilisation of domestic coal resources and reducing reliance on imported technologies. The Ministry of Coal has extended financial support of Rs 1,350 crore under its incentive scheme for coal gasification. Key engineering packages have already been awarded, with major LSTK contracts going to BHEL and Larsen Toubro, while preliminary site development activities are currently underway. Speaking on the occasion, G. Kishan Reddy emphasised the government’s focus on promoting coal gasification as part of the broader Atmanirbhar Bharat vision. He noted that the Cabinet has approved an outlay of Rs 8,500 crore to support coal gasification, with seven projects already finalised. He described the Lakhanpur project, involving an investment of about Rs 25,000 crore, as a key milestone in strengthening domestic capabilities and reducing import dependence. Coal Secretary Vikram Dev Dutt termed the agreement a landmark development, stating that necessary clearances and tender processes are at advanced stages, positioning the project for timely execution. He highlighted the importance of coordinated efforts among stakeholders to ensure effective implementation. The Minister also inaugurated the official website of BCGCL during the event to enhance transparency and stakeholder engagement. The project is expected to accelerate India’s transition towards coal gasification-based industrial applications, contributing to import substitution, efficient resource utilisation and long-term industrial growth, while supporting the broader vision of a self-reliant and resilient economy. (KNN Bureau)