BCGCL Coal-to-Ammonium Nitrate Project Foundation Stone Ceremony
President of India Smt. Droupadi Murmu and Prime Minister Shri Narendra Modi remotely laid the foundation stone for Bharat Coal Gasification & Chemicals Limited's (BCGCL) Coal-to-Ammonium Nitrate Project on June 20, 2026, at Lakhanpur in Jharsuguda district, Odisha. The ceremony was attended by Odisha Governor Shri Hari Babu Kambhampati, Chief Minister Shri Mohan Charan Majhi, Union Minister of Coal and Mines Shri G. Kishan Reddy, Deputy CMs Shri Kanak Vardhan Singh Deo and Smt Pravati Parida, and Union Minister of State for Coal and Mines Shri Satish Chandra Dubey.
Project Structure and Ownership
BCGCL is a joint venture company between Coal India Limited (CIL) holding 51% equity and Bharat Heavy Electricals Limited (BHEL) holding 49% equity. Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited, is contributing approximately 350 acres of its coal-bearing land in Lakhanpur for the project construction and will supply 0.79 Million Tonnes Per Year (MTY) of washed coal and 1.19 MTY of reject coal from its Ib Valley washery to meet the project's coal requirements.
Project Specifications and Investment
The project represents one of India's pioneering commercial-scale initiatives utilizing domestically developed Pressurised Fluidised Bed Gasification (PFBG) technology for chemical production. It is aimed to produce approximately 0.66 Million Tonnes Per Annum (MTPA) of Technical Grade Ammonium Nitrate through coal gasification. The project is being developed at an estimated investment of over ₹25,000 crore and has received Single Window Clearance from the High-Level Clearance Authority (HLCA) of the Government of Odisha.
Government Support and Timeline
The Ministry of Coal, Government of India, has granted financial incentives of ₹1,350 crore to support the commercialization of indigenous coal gasification technology. With all key statutory and environmental approvals, major clearances in place, and financial support secured, the project has a targeted commissioning schedule by September 2029. The project is aligned with the Government of India's National Coal Gasification Mission and is expected to serve as a model for future coal-to-chemicals projects across the country.
Economic Impact
According to Union Minister Shri G Kishan Reddy, the project will generate significant employment for regional youth, promote skill development, and drive regional economic growth through the development of ancillary industries and services. The initiative marks the beginning of a new era of coal processing in the nation, promoting indigenous coal gasification technology and facilitating the conversion of India's abundant coal resources into value-added chemicals.