Prime Minister Shri Narendra Modi will lay the foundation stone for India's first commercial-scale coal-to-ammonium nitrate project on June 20, 2026, at Lakhanpur in Jharsuguda district, Odisha. The ₹25,016 crore project represents a major step in India's energy security strategy and import substitution efforts, targeting reduction of approximately ₹2.7 lakh crore in annual chemical imports.
The project is being developed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL). It will utilize indigenously developed coal gasification technology by BHEL to produce 2,000 tonnes per day of ammonium nitrate. The facility will be constructed on 350 acres of land under Mahanadi Coalfields Limited (MCL) possession, with a land-leasing agreement signed between BCGCL and MCL in April 2026.
The Union Ministry of Coal is providing ₹1,350 crore support under its incentive scheme and has enabled the use of coal-bearing area land for such projects. This initiative is part of a broader government strategy with a cumulative outlay of up to ₹46,000 crore to promote Surface Coal and Lignite Gasification Projects across India. The coal gasification promotion initiative is expected to catalyze investments of ₹2.5 to 3 lakh crore and create approximately 50,000 direct and indirect employment opportunities across 25 projects in coal-bearing regions.
India possesses the world's fifth-largest coal reserves of over 400 billion tonnes, with Coal India Limited being the largest coal-producing company globally. Coal gasification converts coal into synthesis gas (syngas) which can be used to produce value-added products including methanol, urea, ammonium nitrate, synthetic natural gas, and other chemical feedstocks. The project serves as a model for future coal gasification ventures and supports the vision of Aatmanirbhar Bharat by reducing dependence on imported natural gas, methanol, ammonia, and other critical feedstocks.