President of India Smt. Droupadi Murmu and Prime Minister Shri Narendra Modi 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 event 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, and other dignitaries.
BCGCL is a joint venture company formed between Coal India Limited (CIL) holding 51% equity and Bharat Heavy Electricals Limited (BHEL) holding 49% equity. The project represents a significant step in India's National Coal Gasification Mission, utilizing domestically developed Pressurised Fluidised Bed Gasification (PFBG) technology to convert coal into value-added chemicals. Mahanadi Coalfields Limited (MCL), a subsidiary of CIL, is contributing approximately 350 acres of its coal-bearing land in Lakhanpur for the project 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.
The project is being developed at an estimated investment of over ₹25,000 crore and is designed to produce approximately 0.66 Million Tonnes Per Annum (MTPA) of Technical Grade Ammonium Nitrate. It has received Single Window Clearance from the High-Level Clearance Authority (HLCA) of the Government of Odisha and financial incentives of ₹1,350 crore from the Ministry of Coal, Government of India. With all key statutory and environmental approvals in place and Lump Sum Turnkey execution packages awarded, the project is scheduled for commissioning by September 2029.
Union Minister Shri G Kishan Reddy stated that 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 project is expected to serve as a model for future coal-to-chemicals projects across the country, demonstrating India's capability in converting coal into high-value chemical products through indigenous technology.